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Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 14, 2014

 

 

AMERICAN INTERNATIONAL GROUP, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   1-8787   13-2592361

(State or other jurisdiction

of incorporation)

  

(Commission

File Number)

  

(IRS Employer

Identification No.)

175 Water Street

New York, New York 10038

(Address of principal executive offices)

Registrant’s telephone number, including area code: (212) 770-7000

 

(Former name or former address, if changed since last report.)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

Section 7 — Regulation FD

Item 7.01. Regulation FD Disclosure.

American International Group, Inc. (the “Company”) is furnishing the Investor Presentation, dated May 14, 2014, attached as Exhibit 99.1 to this Current Report on Form 8-K (the “Investor Presentation”), which the Company may use from time to time in presentations to investors and other stakeholders. The Investor Presentation will also be available on the Company’s website at www.aig.com.

Section 9 — Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits.

(d)    Exhibits.

99.1    Investor Presentation dated May 14, 2014 (furnished and not filed for purposes of Item 7.01).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

     

AMERICAN INTERNATIONAL GROUP, INC.

(Registrant)

Date: May 14, 2014     By:  

/s/ James J. Killerlane III

    Name:   James J. Killerlane III
    Title:   Associate General Counsel and Assistant Secretary

EXHIBIT INDEX

 

Exhibit
No.		    Description                                             
99.1    Investor Presentation dated May 14, 2014 (furnished and not filed for purposes of Item 7.01).
EX-99.1
American International Group, Inc.
Investor Presentation
May 14, 2014
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 non-bank 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 March 31, 2014 and in Part I, Item 1A.
Risk Factors and Part II, Item 7. MD&A in AIG’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013.
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 First Quarter 2014
Financial
Supplement
available
in
the
Investor
Information
section
of
AIG's
corporate
website,
www.aig.com,
as
well
as
in
this
presentation.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that (i) any U.S. tax advice
contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the
purpose of avoiding penalties under the Internal Revenue Code; (ii) any such tax advice is written in connection with the promotion or
marketing
of
the
matters
addressed;
and
(iii)
if
you
are
not
the
original
addressee
of
this
communication,
you
should
seek
advice
based on your particular circumstances from an independent advisor.
Note: Information included in the presentation is as of May 14, 2014.

3
AIG –
An Established Global Insurance Franchise
A platform for delivering sustainable profitable growth.
1)
Growth economies are those within Central Europe, Middle East, Africa, Latin America and Asia Pacific, excluding Japan.
Core
Insurance
Businesses
Strategies
Key Accomplishments
AIG Property
Casualty
Grow high value lines and optimize business mix
1Q14 NPW growth of 3%, excluding FX,
compared to 1Q13
Casualty business achieved risk adjusted profit
in
1Q14
Execute on technical
underwriting, improved claims
management, and analytics
1Q14 Accident year loss ratio, as adjusted,
improved 6.2 pts since 1Q11 (10.2 pt
improvement for Commercial Insurance)
Capitalize on global footprint; Focus on targeted growth in
key markets
13%
of
1Q14
NPW
from
growth
economies
(1)
AIG Life and
Retirement
Maintain balanced portfolio of products and leverage scale
advantage
Diversified sources of net flows and earnings
Optimize spread management through new business
pricing and active crediting rate management
Profitability enhanced through ongoing spread
management actions
Expand distribution network and increase penetration of
multiple products through each distribution partner
Approximately
$0.8
bn
–
$1.4
bn
in
quarterly
pre-tax operating income since 4Q11
Mortgage
Guaranty
Selectively underwrite based on multivariate model to
achieve higher risk adjusted returns
Earnings reflect new business; 62% of net
premiums earned in 1Q14 were from business
written after 2008
Actively manage legacy book
Delinquency ratio declined 60 bps from 4Q13 to
5.3% at 1Q14

4
AIG –
Building on Capital Strength
Active Capital Management
25% increase in quarterly dividend to
$0.125/sh. in Feb. 2014
Approximately $867 million of shares
repurchased in 1Q14
Since May 2011, deployed over $20 billion
through share repurchases, dividends and
liability management (non-DIB)
Reduced DIB debt by approx. $3 billion in
2014 using cash allocated to the DIB
Robust Statutory Capital
2013
RBC
ratios
(1)
:
2013
total
adjusted
statutory
capital
(1)
:
Growth in BVPS
March
31,
2014
BVPS
(ex.
AOCI)
of
$65.49
–
up 10% from 3/31/2013
Strong Liquidity
& Cash Flows
1Q14 insurance company dividends of $1.7
billion
–
Expected
$5
-
6
billion
for
2014
Tax sharing payments of $289 million in 1Q14
$11.2 billion of total AIG Parent liquidity
Monetization of
Deferred Tax Assets
Net DTA of $21.2 billion at Dec. 31, 2013
AIG
Property
Casualty
$48.6 bn
AIG Life and
Retirement
$39.8 bn
Other
$13.0 bn
(2)
Mortgage
Guaranty
$2.4 bn
AIG
Shareholders’
Equity
-
$103.8 bn at March 31, 2014
–
AIG PC U.S.: 416% (ACL)
–
AIG L&R: 568% (CAL)
–
AIG PC U.S.: $22.0 billion
–
AIG L&R: $22.6 billion
1)
The inclusion of RBC measures and total adjusted statutory capital 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. Total adjusted statutory capital and RBC ratio for AIG Life and Retirement excludes holding company, AGC Life Insurance Company.
2)
Other includes AIG Parent (including the deferred tax asset valuation allowance), Global Capital Markets, Direct Investment book, AIG Life Holdings, Inc. (a non-operating
holding company) and assets and liabilities held for sale, net of consolidation and eliminations.
Note: Data as of March 31, 2014 unless otherwise noted.

AIG Property Casualty

6
42,000 employees who serve clients worldwide
51% of premiums written outside of U.S. and Canada in 2013
Average claims paid each business day of over $100 million in 2013
#1 commercial insurance
organization in
U.S./Canada, with
established and growing
#1 U.S.-based property casualty
insurance organization in Europe, with
established and growing positions in
the Middle East and Africa
(2)
#1 foreign property
casualty insurer in Japan
and China
(2)
Asia Pacific
2013 NPW: $9.7 bn
28% of total NPW
AIG
Property
Casualty
–
A
Truly
Global
Franchise
AIG Property Casualty is a diversified global P&C market leader with 2013 NPW of over $34 billion.
1)
EMEA region consists of Europe, Middle East and Africa.
2)
As measured by full year 2012 net premiums written.
EMEA
(1)
2013 NPW: $6.8 bn
20% of total NPW
Americas
2013 NPW: $17.9 bn
52% of total NPW
position
in
Latin
America
(2)

7
AIG Property Casualty –
Financial Highlights
Full Year
First
Quarter
($ in billions)
2011
2012
2013
2014
Net premiums written
$34.8
$34.4
$34.4
$8.3
Net investment income
4.3
4.8
5.3
1.3
Pre-tax operating income
$1.1
$1.8
$4.8
$1.2
Accident year loss ratio, as adjusted
68.7
65.2
63.8
63.2
Expense ratio
30.4
34.6
34.6
34.1
Accident year combined ratio, as adjusted
99.1
99.8
98.4
97.3
Cash & invested assets
(1)
$126.3
$130.8
$123.1
$123.0
Shareholders’
equity
47.3
48.9
46.3
48.6
Shareholders’
equity, excluding AOCI
$44.3
$43.7
$43.1
$45.0
1)
Includes intercompany invested assets that are eliminated in consolidation.

8
AIG
Property
Casualty
–
Business
Overview
A broad product platform.
Global
–
Unique
ability
to
serve
multinational
clients
Innovative
–
Often
first
to
market
in
new
products
and
services,
such
as
CyberEdge
Capital
Strength
–
U.S.
total
adjusted
statutory
capital
(1)
of
$22.0
billion
at
year-end
2013
Commercial Insurance
Full
Year
2013
NPW
–
$20.8
bn
Consumer Insurance
Full
Year
2013
NPW
–
$13.6
bn
1)
The inclusion of total adjusted statutory capital 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.

9
AIG
Property
Casualty
–
Strategic
Focus
Strategic levers driving shareholder value creation.
Business
Mix
Underwriting
Excellence
Claims
Service
Operational
Effectiveness
Capital
Management
Balance growth with
profitability and risk
Growth in Risk
Adjusted Profitability
(RAP), accretive
products and
geographies
Achieve scale in key
markets over a
reasonable period of
time
Rationalize/price for
capital intensive
product lines
Globalize
standards for
underwriting and
pricing
Enhance
underwriters’
analytical
capabilities
Balance between
art and science
intertwined with
finer segmentation
Global Claims
Initiative leading to
claims cost savings
and enhanced client
service
Improved claims
practices in medical
and anti-fraud
driven by data
analytics
Build advanced
claims IT
architecture
Simplify and
standardize legacy
operating models
Reduce overhead
with cost
optimization and
shared services
Use RAP as a key
performance
indicator
Leverage capital
maintenance
agreements with
AIG
Increase
underwriting
leverage

10
AIG
Property
Casualty
–
Strong
Brands
and
Customer
Loyalty
AIG Property Casualty continues to be recognized for excellence.
Confirmit
2013 Achievement in Customer
Excellence
Reader’s Digest
2013 Trusted Brand Award for
Auto Insurance
World Travel Fair
2013 Best Quality Service, Travel Insurance
Company (3
rd
Consecutive Year)
Business Insurance
2014
Innovation
Award
-
AIG
Multinational Program Design Tool
Motordata Research Consortium
2014
Insurer
of
the
Year
(3
rd
Consecutive
Year)
Nanfang Daily
2013 Most Trustworthy Financial Brand
(2
nd
Consecutive Year)
Global Finance
2013 Best in Insurance Awards
British Insurance Award
2013 Underwriter of the Year
MENA Insurance Review
2014 Financial Insurer of the Year
UK CIR Magazine
2014 Commercial Insurer and
Specialist Provider of the Year
Awards
PropertyCasualty360
2013 Best Overall Commercial
Insurance Provider
Risk & Försäkring
2013 Insurance Company of the Year
Australian Business Award
2013 Service Excellence
UK Insurance Claims Award
2013 Innovation of the Year
Reaction Magazine
2013 Best Global Insurance
Company Overall
Celent Model Insurer Award
2011
-
2013
Australia and New Zealand Institute
of Insurance & Finance (ANZIIF)
2013
Innovation
of
the
Year
–
CyberEdge
UK Captive Review
2014 Innovation in Fronting Award
The Tempkin Group
2013 Customer Experience Excellence
Award
AIG Clients as a Percentage of Each Category
97%
As of
12/1/13
91%
As of
11/1/13
40%
As of
6/1/13
Insurance
Times
-
UK
2014 Insurer Claims Initiative of the
Year
-
Commercial
Lines `

11
AIG
Property
Casualty
–
Product
Diversification
Commercial Insurance
Consumer Insurance
Casualty
General Liability
Commercial Auto
Workers’
Compensation
Excess Casualty
Crisis Management
Property
Global Property including high
deductible
Industrial, Energy and Commercial
Property
Specialty
Aerospace
Environmental
Political Risk
Trade Credit
Marine
Surety
Financial Lines
D&O, E&O
Cyber Security
Fidelity
Employment Practices
Kidnap and Ransom
Accident and
Health
Personal Accident
Supplemental Medical
Travel
Life
Personal Lines
Automobile
Homeowners
Extended Warranty
Specialty (e.g., identity theft, credit
card protection)
Private Client Group

12
AIG
Property
Casualty
–
Reserves
Business mix shift to shorter-tail lines,
expected to reduce net reserves.
Over 50% of reserves are now 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.
Note:
Allocation
by
accident
year
for
illustration
purposes
only
and
subject
to
change.
Net
reserves
presented
above
are
shown
before
the
effect
of
a
$3.7
billion
loss reserve discount.
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.
Net Reserves by Accident Year
$66.3 billion at March 31, 2014
2004 &
Prior
15%
2005 -
2007
9%
2008 -
2010
22%
2011 -
2014
54%

Total Property Casualty
Commercial Insurance
Consumer Insurance
13
AIG Property Casualty –
Accident Year Loss Ratio, As Adjusted, Progression

14
AIG
Property
Casualty
–
Investment
Composition
&
Ratings
1)
Includes intercompany invested assets that are eliminated in consolidation.
Bond
Portfolio
–
By
Agency
Credit
Rating
March 31, 2014 -
$98.9 billion
Bond
Portfolio
–
By
Agency
Credit
Rating
December 31, 2013 -
$99.0 billion
Cash
&
Invested
Assets
–
Total
Portfolio
Composition
(1)
March 31, 2014 -
$123.0 billion
Cash
&
Invested
Assets
–
Total
Portfolio
Composition
(1)
December 31, 2013 -
$123.1 billion

AIG Life and Retirement

16
AIG
Life
and
Retirement
–
Operating
from
a
Position
of
Strength
Market Leader
Long standing leading market positions
Scale advantage in key product lines
Product Diversity
& Capacity for
Growth
Comprehensive portfolio of life insurance, A&H, annuity, group retirement,
group benefits, institutional products and mutual funds
Breadth of products allows for growth as demographics and operating
environments shift
Multi-channel
Distribution
Strong Capital
Position
Year-end
2013
RBC
ratio
(1)
at
568%
(CAL)
supports
sales
growth
Total
adjusted
statutory
capital
(1)
of
$22.6
billion
at
year-end
2013
1)
The inclusion of RBC measures and total adjusted statutory capital 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.
CAL
is
defined
as
Company
Action
Level.
Total adjusted statutory capital and RBC ratio excludes holding company, AGC Life Insurance Company.
Distribution
organization
leverages
broad
product
portfolio
across
all
channels
Over 300,000 financial professionals

17
AIG Life and Retirement –
Financial Highlights
Full Year
First
Quarter
($ in billions)
2011
2012
2013
2014
Premiums and deposits
$24.4
$21.0
$28.8
$7.1
Net investment income
9.9
10.7
10.9
2.8
Pre-tax operating income
3.3
4.2
5.1
1.4
Cash
&
invested
assets
(1)
194.2
205.3
196.9
200.1
Assets under management
256.9
290.4
318.0
324.4
Shareholders’
equity
34.2
40.0
38.7
39.8
Shareholders’
equity,
excluding
AOCI
29.5
31.6
34.9
34.6
Net flows
2.9
(1.3)
4.6
1.0
1)
Includes intercompany invested assets that are eliminated in consolidation.

18
AIG
Life
and
Retirement
–
Diversified
Business
Mix
Pre-tax Operating Income
Full Year 2013 -
$5.1 billion
Pre-tax Operating Income
Full Year 2012 -
$4.2 billion
Retirement
Income Solutions
12%
Retail: 62%
Institutional: 38%
Group Retirement
24%
Institutional Markets
13%
Retirement
Income Solutions
12%
Fixed Annuities
35%
Life Insurance
and A&H
14%
Retail: 59%
Institutional: 41%
Group Retirement
28%
Institutional Markets
13%
Fixed Annuities
31%
Life Insurance
and A&H
16%
Retail: 69%
Institutional: 31%
Premiums and Deposits
Full Year 2013 -
$28.8 billion
Life Insurance
and A&H
12%
Fixed Annuities
10%
Retirement
Income Solutions
30%
Retail Mutual Funds &
Brokerage Services
17%
Group Retirement
25%
Institutional Markets
4%
Group Benefits
2%
Retail: 59%
Institutional: 41%
Premiums and Deposits
Full Year 2012 -
$21.0 billion
Life Insurance
and A&H
16%
Fixed Annuities
7%
Retirement
Income Solutions
23%
Group Retirement
34%
Institutional Markets
4%
Group Benefits
3%
Retail Mutual Funds &
Brokerage Services
13%

AIG
Life
and
Retirement
–
Assets
Under
Management
Year-over-year
growth
in
AUM
reflects
strong
retail
investment
product
net
flows,
higher
separate
account balances and greater institutional assets.
Life
Insurance
and A&H
13%
Fixed
Annuities
24%
Retirement
Income
Solutions
11%
Retail
Mutual
Funds
3%
Group
Retirement
30%
Institutional
Markets
18%
Group
Benefits
1%
Life
Insurance
and A&H
11%
Fixed
Annuities
21%
Retirement
Income
Solutions
14%
Retail
Mutual
Funds
4%
Group
Retirement
29%
Institutional
Markets
20%
Group
Benefits
1%
March
31,
2014
-
$324.4
billion
March
31,
2013
-
$296.9
billion
19

20
AIG Life and Retirement –
Leading Market Positions
* Based on LIMRA rankings for respective periods.
Rank*
Metric
2013
2012
2
6
Total Annuity Sales
1
2
Fixed-Rate Deferred Annuity Sales
4
7
Variable Annuity Sales
4
5
Structured Settlement Annuity Sales
8
6
Term Life Sales
9
18
Universal Life Sales
2
2
K-12 403(b) Assets
3
3
Total 403(b) Assets
Market Positions
Excellence in Service, Marketing and Technology
Market Tools
2013 Achievement in
Customer Excellence
(ACE award for 7
th
Consecutive Year)
DALBAR
2013 Annuity Service
Excellence Award
(7
th
Consecutive Year)
2013 #1 Ranking for
Annuity Client Quarterly
Statements
(13
th
Consecutive Year)
PlanSponsor Magazine
Earned 17 Best-in-Class
Awards for Participant and
Plan Sponsor Services in
2013
International MarCom
Awards
2012 and 2013 Platinum
and Gold Awards
(42 in total)
Insurance & Financial
Communications
Association
2012 and 2013 Best in
Show and Awards of
Excellence (15 in total)
InformationWeek 500
2012 and 2013 Top
Technology Innovators
Best’s Review
2012 and 2013 Innovators
Showcase

21
AIG Life and Retirement –
Broad Multichannel Distribution Network
2013 Sales By Distribution Channel
Non-affiliated: 67%
2012 Sales By Distribution Channel
VALIC Financial Advisors
AIG Financial Network
Advisor Group
AIG Direct
Affiliated
Broker-Dealers
Banks
Independent Marketing Organizations
Benefit Brokers
Non-affiliated
B-Ds
34%
Banks
19%
IMOs
10%
Advisor Group
3%
AIG Financial Network
3%
AIG Direct & Other
1%
VALIC FAs
26%
Benefit Brokers
3%
B-Ds
29%
Banks
13%
IMOs
11%
Advisor Group
2%
AIG Financial Network
5%
AIG Direct & Other
3%
VALIC FAs
33%
Benefit
Brokers
4%
Affiliated: 33%
Affiliated: 43%
Non-affiliated: 57%

22
Company
FY 2013
% Change
FY 2012
($ in millions)
Rank
Sales
From FY 2012
Rank
Sales
Jackson National
1
$20,931
6%
1
$19,713
Lincoln Financial Group
2
13,772
40%
4
9,848
Prudential Financial
3
11,170
(43%)
2
19,469
MetLife
4
9,289
(43%)
3
16,182
AEGON/Transamerica
5
8,253
60%
6
5,163
AIG
6
8,191
80%
8
4,561
AXA Equitable
7
7,426
8%
5
6,855
Nationwide
8
5,663
37%
9
4,146
Ameriprise
9
5,010
2%
7
4,917
Pacific Life
10
4,334
14%
10
3,796
Other
25,897
24%
20,811
Total
$119,935
4%
$115,461
AIG
Life
and
Retirement
–
Individual
Variable
Annuities
Unique Opportunity for AIG
*
Source: LIMRA VA Sales report. VA industry sales data reported herein
excludes Employer Plan sales and internal exchange sales
Industry Retail Variable Annuity Sales*
Total: $25.3BN
De-Risked Benefits
(2)
Early Benefits
Revised Benefits
(3)
1)
Excludes $4.1BN 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.
Account Value by GMWB Guarantee at 3/31/14
(1)
A strategic growth opportunity for AIG.
Individual variable annuities represented 15% of AIG Life and Retirement’s total reserves at December 31, 2013.
Certain competitors pulled back on their product offerings in 2013, exemplified by their decreased market share.
AIG has continually improved its industry ranking since 2009; remaining growth opportunity in VA due to market share of only 6.8%.
Disciplined pricing and de-risked benefits: VIX indexing of rider fees, volatility control funds, mandatory 20% asset allocation to fixed
accounts.

AIG
Life
and
Retirement
–
Index
Annuities
Source: LIMRA Indexed Deferred Annuity Sales Report
Quarterly Index Annuity Industry Sales
($ in billions)
Provides
an
opportunity
to
diversify
Retirement
Income
Solutions
offerings.
In past years, many leading carriers avoided the index annuity
market due to issues centered around suitability, sales
practices, and proposed treatment as “securities”
Evolving Market
Regulatory changes, improved industry practices, and product
design changes have changed the landscape
2013 industry sales of $39 billion reflect a CAGR of 11% over
10 years
Approximately 2/3 of index annuity sales include a Guaranteed
Living Benefit (GLB)
AIG Strategic Advantages To Developing Index Annuities
Broader
distribution
through
independent
marketing
organizations
(the
product
does
not
require
a
securities
license)
Enhanced sales of “lower-risk”
lifetime income solutions that require simpler hedging     
Ability to further diversify our base of fee and spread income
Potential for higher fixed sales in lower interest rate periods
Increased sales through advisors looking for less complex guaranteed lifetime income products
Ability to leverage AIG L&R’s strengths of low-cost administration and multi-channel distribution, combined with leading-edge
product innovation and dynamic hedging capability
23

Bond Portfolio –
By Agency Credit Rating
December
31,
2013
-
$157.2
billion
Cash
&
Invested
Assets
–
Total
Portfolio
Composition
(1)
December 31, 2013 -
$196.9 billion
Cash
&
Invested
Assets
–
Total
Portfolio
Composition
(1)
March 31, 2014 -
$200.1 billion
AIG
Life
and
Retirement
–
Investment
Composition
&
Ratings
1)
Includes intercompany invested assets that are eliminated in consolidation.
Bond Portfolio –
By Agency Credit Rating
March 31, 2014 -
$161.7 billion
24

AIG
Life
and
Retirement
–
Net
Investment
Spread
Management
Base
Portfolio
Yields
(1)
Cost
of
Funds
(2)
Base
Net
Investment
Spreads
(1)
1)
Includes return on base portfolio. Quarterly results are annualized.
2)
Excludes the amortization of sales inducement assets. At March 31, 2014, a total of 72% of fixed annuity and
universal life account values are at contractual minimum guaranteed crediting rates vs. 73% at December 31, 2013.
Total
Base
Yield
Fixed
Annuities
Group
Retirement
25

Mortgage Guaranty
(United Guaranty Corporation)

27
United Guaranty –
Financial Highlights
Full Year
First
Quarter
($ in millions)
2011
2012
2013
2014
Net premiums written
$801
$858
$1,048
$231
Net investment income
132
146
132
35
Pre-tax operating income (loss)
($97)
$9
$205
76
Combined ratio
128.9
119.2
90.9
80.8
Cash & invested assets
(1)
$4,081
$4,222
$3,934
$4,005
Shareholders’
equity
2,425
2,311
2,282
2,361
Shareholders’
equity, excluding AOCI
$2,332
$2,193
$2,268
$2,320
1)
Includes intercompany invested assets that are eliminated in consolidation.

28
United Guaranty –
A Market Leader
Risk based pricing driving profitable new business.
UGC’s risk-based pricing plan, Performance Premium, utilizes over a dozen variables to evaluate loan risk and price the
mortgage insurance policy.
United Guaranty continues to insure a high volume of mortgages with excellent credit quality despite the decline in mortgage
originations.
Vintage
Year
(2)
Average
FICO Score
LTV Ratio
2010
760
90
2011
757
91
2012
758
91
2013
753
91
1Q14
751
92
New
Insurance
Written
(1)
($ in billions)
1)
Represents principal amount of loans insured.
2)
Domestic First-lien only.

29
United
Guaranty
–
Shrinking
Legacy
In-Force
New business generated after 2008 represents 71% of primary domestic RIF at March 31, 2014, the highest among peers
active
before
2009
(1)
.
Due to proactive management of delinquent book through UGC’s Letter Campaign, at March 31, 2014, the portion of defaults
that
have
missed
12
or
more
payments
declined
to
45%
from
49%
at
the
end
of
2011,
the
lowest
among
peers
active
before
2009
(1)
.
Note: Data presented above is for Domestic First Lien operations.
1)
Peers
include
Mortgage
Guaranty
Insurance
Company
(MGIC),
Radian
Guaranty,
Incorporated
and
Genworth
Mortgage
Insurance
Company.
Primary Delinquency Rate
Primary
Risk-in-force
(RIF)
–
$37.4
billion
As of March 31, 2014 (by vintage year)
2005 and prior
8%
2006
5%
2007
10%
2008
6%
2009
2%
2010
3%
2011
8%
2012
22%
2013
32%
2014
4%

30
United Guaranty –
Financial Strength
UGC
has
the
lowest
default
rate
and
highest
portion
of
RIF
from
loans
originated
after
2008
among
peers
active
before
2009
(2)
.
UGC’s primary statutory insurance subsidiary, United Guaranty Residential Insurance Company (UGRIC), maintains an S&P
rating
of
A-
and
Moody's
rating
of
Baa1
with
stable
outlooks
(3)
.
UGC operating earnings reflect increasing contribution from new business.
At December 31, 2013 UGRIC has over $3 billion of assets with 89% in cash and unaffiliated investments.
Capitalization and Risk
Source: Statutory filing data.
1)
Risk-to-capital estimates for all companies, including United Guaranty, are preliminary estimates for March 31, 2014.
2)
Essent was not active before 2009.
3)
As of the date of this presentation.
At December 31, 2013
At March 31,
2014
Default
Rate (%)
Post 2008
RIF (%)
Risk-to-
Capital
(1)
United Guaranty
5.3
71
18.4
Genworth
7.4
47
18.7
MGIC
9.7
44
15.3
Radian
6.3
62
19.2
Essent
0.1
100
16.1
Asset Composition
Cash & Bonds to Total Admitted Assets

Capital Strength

32
Capital Position and Ratings
Book Value Per Share
Capital Structure
$68.62
1)
Includes AIG Notes, Bonds, Loans and Mortgages Payable, and AIGLH
Notes and Bonds Payable and junior subordinated debt.
2)
As of the date of this presentation, all ratings have stable outlooks, except
for the S&P rating for AIG-Senior Debt, which is negative.
3)
Ratings only reflect those of the core insurance companies.
($ in billions, except per share data)
$122.3
Leverage Ratios:
Dec. 31,
2013
Mar. 31,
2014
Financial Debt + Hybrids /
Capitalization
17.3%
16.9%
Financial Debt / Capitalization
12.8%
12.5%
$71.77
$125.6
$66.38
S&P
Moody’s
Fitch
AM Best
AIG –
Senior
Debt
A-
Baa1
BBB+
NR
AIG PC
(3)
–
FSR
A+
A1
A
A
AIG L&R
(3)
–
FSR
A+
A2
A+
A
Credit
Ratings
(2)
$0.6
$0.6

33
Financial Flexibility –
A Source of Strength
AIG Parent Cash, Short-Term Investments &
Unencumbered Fixed Maturity Securities
Insurance Company Distributions
($ in millions)
($ in billions)
AIG Life and Retirement distributions in 1Q14 included approximately $316 million of legal settlement proceeds received. In 2013, AIG
Property
Casualty
distributions
included
$1.8
billion
from
legal
entity
restructurings
and
an
intercompany
reinsurance
optimization
and
AIG
Life and Retirement distributions included approximately $800 million from legal settlement proceeds received.
AIG Parent cash, short-term investments and unencumbered fixed maturity securities of $11.2 billion includes $4.4 billion allocated
toward
future
maturities
of
liabilities
and
contingent
liquidity
stress
needs
of
the
Direct
Investment
book
and
Global
Capital
Markets
as
of
March 31, 2014.
AIG Parent also maintains aggregate available capacity of $4.4 billion under its syndicated credit facility plus its contingent liquidity facility.
Tax sharing payments from subsidiaries amounted to $289 million in 1Q14.
$13.1
$11.2
$5,349
$8,893
90
$2,496
$4,370
$2,853
$4,433
FY 2012
FY 2013
1Q14
$10.2
$8.2
$3.0
$3.0
Dec. 31,
2013
Mar. 31,
2014
Unencumbered
Fixed Maturity
Securities
Cash & Short-
term Investments
AIG Property Casualty
AIG Life and Retirement
UGC
$1,653

Other Sources of Value

35
Direct Investment Book and Global Capital Markets
Note: As of March 31, 2014.
1)
The DIB consists of a portfolio of assets and liabilities held directly by AIG Parent in the Matched Investment Program and certain non-derivative assets
and liabilities of AIGFP. The DIB and GCM are included in Other Operations in AIG’s Consolidated Balance Sheet.
2)
The overall hedging activity for the assets and liabilities of the DIB is executed by GCM. The value of hedges related to the non-derivative assets and
liabilities of AIGFP in the DIB is included within the assets, liabilities and operating results of GCM and is not included within the DIB assets, liabilities or
operating results.
Direct Investment Book
(1)
Global Capital Markets
(1)
Assets
$21.1
$7.0
Liabilities
$16.5
$3.7
Net Asset Value
$4.6
$3.3
Legacy Matched                            
Assets & Liabilities
Legacy AIGFP                    Stable Value                      
CDS Portfolio
Wraps
Third-Party
Derivatives
Notional ($
billion)
--
$71
Multi-
Sector
Corporate
Arbitrage
$8
$34
$3
$12
Weighted
Average Life
(Years)
--
7.1
5.8
2.0
4.5
8.0
Strategy
Assets managed to ensure
liabilities can be met as they
come due, even under stress
scenarios
Primarily hedges of
DIB assets and
liabilities          
Bulk of risk related
to interest rates,
foreign exchange
and equities has
been hedged
Remaining credit
risk viewed as
attractive risk-
reward
Since 3Q 2012,
notional value of
$10 billion has
been novated to
AIG Life and
Retirement
Further novations
are expected to
occur over time
“Clearing
house”
for
operating company
hedging and risk
management needs
($ in billions)
Market Derivatives
(2)
AIG Hedging &
Hedging Platform
Go Forward

36
Direct Investment Book Long-Term Debt
($ in billions)
1)
In May 2014, AIG reduced DIB debt through a redemption of $750 million aggregate principal amount of its 3.000% Notes due 2015 using cash allocated
to the DIB.

37
Deferred Tax Asset Overview
AIG continues to have substantial deferred tax assets that are available to offset future tax obligations.
1)
Foreign tax credits triggered in 2013 have increased the amount of carryover.
2)
Change during the period is primarily attributable to available for sale investment securities.
As of 12/31/12
As of 12/31/13
($ in billions)
Type
Gross
Attributes
Deferred
Tax Asset
Gross
Attributes
Deferred
Tax Asset
Utilization/Expiration
Net Operating Loss
Carryforwards
Non-Life
& Life
$39.5
$13.8
$35.8
$12.5
Utilize against AIG PC, ILFC, UGC,
AIG Parent and 35% of AIG L&R
income
2028–2031 Expiration
Capital Loss
Carryforwards
Valuation Allowance
Life
$16.6
$5.8
($5.1)
$1.4
$0.5
($0.5)
Utilize against capital gains from AIG
L&R
2014 Expiration
Foreign
Tax Credits
General
$4.7
$5.3
(1)
Utilize against 65% of AIG L&R
income
2016–2023 Expiration
Subtotal –
U.S. Tax
Attributes
19.2
17.8
Other
Deferred Tax
Assets/(Liabilities)
(2.5)
3.4
(2)
Net Deferred Tax
Assets
$16.7
$21.2

Appendix

39
Glossary of Non-GAAP Financial Measures
AIG
AIG –
After-tax operating income (loss) attributable to AIG
is derived by excluding the following items from net income (loss) attributable to AIG:
income (loss) from discontinued operations, net loss (gain) on sale of divested businesses and properties, income from divested businesses,
legacy
tax
adjustments
primarily
related
to
certain
changes
in
uncertain
tax
positions
and
other
tax
adjustments,
legal
reserves
(settlements)
related to “legacy crisis matters,”
deferred income tax valuation allowance (releases) charges, changes in fair value of AIG Life and Retirement
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 (losses),
AIG
Property
Casualty
other
(income)
expense
-
net,
(gain)
loss
on
extinguishment
of
debt,
net
realized
capital
(gains)
losses,
and
non-
qualifying
derivative
hedging
activities,
excluding
net
realized
capital
(gains)
losses.
“Legacy
crisis
matters”
include
favorable
and
unfavorable
settlements related to events leading up to and resulting from our September 2008 liquidity crisis and legal fees incurred by AIG as the plaintiff
in connection with such legal matters.
Book Value Per Common Share Excluding Accumulated Other Comprehensive Income (Loss) (AOCI)
is derived by dividing Total AIG shareholders’
equity, excluding AOCI, by Total common shares outstanding.
AIG Property Casualty
Pre-tax operating income (loss)
includes both underwriting income (loss) and net investment income, but excludes net realized capital (gains) losses, other
(income) expense -
net, and legal settlements related to legacy crisis matters. Underwriting income (loss) is derived by reducing net premiums earned by
claims and claims adjustment expenses incurred, acquisition expenses and general operating expenses.
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 on AIG Property Casualty in excess of $10 million each.
AIG Life and Retirement
Pre-tax operating income (loss)
is derived by excluding the following items from pre-tax income (loss): legal settlements related to legacy crisis matters,
changes in fair values of fixed maturity securities designated to hedge living benefit liabilities (net of interest expense), net realized capital (gains) losses, and
changes in benefit reserves and DAC, VOBA, and SIA related to net realized capital gains (losses).
Premiums and deposits
includes direct and assumed amounts received on traditional life insurance policies, group benefit policies and deposits on life-
contingent payout annuities, as well as deposits received on universal life, investment-type annuity contracts and mutual funds.
Mortgage Guaranty (United Guaranty Corporation)
Pre-tax operating income (loss):
is derived by excluding  net realized capital (gains) losses from pre-tax income (loss).
Results from discontinued operations are excluded from all of these measures.

40
AIG Consolidated Financial Highlights
Full Year
First
Quarter
($ in millions, except per share amounts)
2011
2012
2013
2014
Revenues
$65,105
$71,021
$68,678
$16,112
Net income attributable to AIG
20,622
3,438
9,085
1,609
Diluted earnings per common share
$11.01
$2.04
$6.13
$1.09
ROE, Ex. AOCI
(2)
26.6%
3.7%
10.1%
6.8%
After-tax operating income attributable to AIG
$2,086
$6,635
$6,762
$1,781
After-tax operating income attributable to AIG per common share
$1.16
$3.93
$4.56
$1.21
ROE –
After-tax operating income
(3)
2.7%
7.2%
7.5%
7.5%
Book value per common share
$53.53
$66.38
$68.62
$71.77
Book value per common share -
Ex. AOCI
$50.11
$57.87
$64.28
$65.49
1)
Includes
deferred
tax
asset
valuation
allowance
release
of
$18.3
billion
in
2011.
2)
Computed as Actual or Annualized Net income (loss) attributable to AIG divided by Average AIG Shareholders' equity, excluding AOCI.
3)
Computed as Actual or Annualized After-tax operating income divided by Average AIG Shareholders' equity, excluding AOCI.
(1)

41
Non-GAAP Reconciliation –
Pre-tax Operating Income
First Quarter
2011
2012
2013
2014
Income from continuing operations, before tax
$                     2,100
$                        2,023
$                        5,133
$                        1,309
Adjustments to arrive at pre-tax operating income:
Net realized capital (gains) losses
(957)
(211)
(380)
(142)
Legal settlements
-
(17)
(13)
(8)
Other (income) expense -
net
5
(2)
72
-
Pre-tax operating income
$                     1,148
$                        1,793
$                        4,812
$                        1,159
First Quarter
2011
2012
2013
2014
Income from continuing operations, before tax
$                     2,956
$                        3,780
$                        6,505
$                        1,232
Adjustments to arrive at pre-tax operating income:
Legal settlements
-
(154)
(1,020)
(30)
Changes in fair value of securities designated to hedge
living benefit liabilities, net of interest expense
-
(37)
161
(76)
Change in benefit reserves and DAC, VOBA and SIA
related to net realized capital (gains) losses
327
1,201
1,486
(30)
Net realized capital (gains) losses
(6)
(630)
(2,037)
321
Pre-tax operating income
$                     3,277
$                        4,160
$                        5,095
$                        1,417
First Quarter
2011
2012
2013
2014
Income from continuing operations, before tax
$                         (77)
$                              15
$                            213
$                              77
Adjustments to arrive at pre-tax operating income:
Net realized capital (gains) losses
(20)
(6)
(8)
(1)
Pre-tax operating income (loss)
$                         (97)
$                                9
$                            205
$                              76
Full Year
Full Year
Full Year
United Guaranty
($ in millions)
AIG Property Casualty
($ in millions)
AIG Life and Retirement
($ in millions)

42
March 31,
2011
2012
2013
2014
Net income attributable to AIG
$               20,622
$                 3,438
$                 9,085
$                 1,609
Adjustments to arrive at After-tax operating income attributable to AIG:
(Income) loss from discontinued operations
                    (2,448)
                          (1)
                        (84)
                         47
Net (income) loss from divested businesses
                        663
                     4,039
                        117
                        (12)
Uncertain tax positions and other tax adjustments
                          -  
                        543
                        791
                        (28)
Legal reserves (settlements) related to legacy crisis matters
                         13
                        353
                       (460)
                          (2)
Deferred income tax valuation allowance releases
                  (18,307)
                    (1,911)
                    (3,237)
                        (65)
Amortization of FRBNY prepaid commitment fee asset
                     2,358
                          -  
                          -  
                          -  
Changes in fair value of AIG Life and Retirement fixed maturity securities
   designated to hedge living benefit liabilities, net of interest expense
                          -  
                        (24)
                        105
                        (49)
Changes in benefit reserves and DAC, VOBA and SIA related to net
   realized capital gains
                        202
                        781
                     1,132
                        (12)
AIG Property Casualty other (income) expense – net
                          -  
                          -  
                         47
                          -  
Loss on extinguishment of debt
                       (480)
                         21
                        423
                        155
Net realized capital (gains) losses
                       (453)
                       (586)
                    (1,157)
                        138
Non-qualifying derivative hedging gains, excluding net realized capital gains
                        (84)
                        (18)
                          -  
                          -  
After-tax operating income attributable to AIG
$                 2,086
$                 6,635
$                 6,762
$                 1,781
Full Year
2013
Change in net premiums written
Increase in original currency
3.8%
Foreign exchange effect
(3.9%)
Decrease as reported in US $
(0.1%)
After-tax Operating Income Attributable to AIG
($ in millions)
Foreign exchange effect on net premiums written:
Full Year
Non-GAAP Reconciliation –
After-tax Operating Income and
Foreign Exchange Effect on NPW
1)
Includes results of ILFC.
(1)

43
Non-GAAP Reconciliation –
BVPS ex. AOCI, Premiums &
Deposits, Accident Year Combined Ratio, As Adjusted
March 31,
2011
2012
2013
2014
Total AIG shareholders’ equity
101,538
$           
98,002
$               
100,470
$             
103,833
$             
Less: AOCI
6,481
                
12,574
                 
6,360
                   
9,085
                   
Total AIG shareholders’ equity, excluding AOCI
95,057
$             
85,428
$               
94,110
$               
94,748
$               
Total common shares outstanding
1,896,821,482
    
1,476,321,935
      
1,464,063,323
      
1,446,647,787
      
Book value per common share
53.53
$              
66.38
$                 
68.62
$                 
71.77
$                 
Book value per common share, excluding AOCI
50.11
$              
57.87
$                 
64.28
$                 
65.49
$                 
First Quarter
2011
2012
2013
2014
Premiums and deposits
24,392
$             
20,994
$                
28,809
$                
7,129
$                  
Deposits
(21,302)
             
(17,898)
                 
(25,542)
                 
(6,373)
                  
Other
(541)
                   
(632)
                     
(671)
                     
(159)
                     
Premiums
2,549
$              
2,464
$                  
2,596
$                  
597
$                    
First Quarter
2011
2012
2013
2014
Loss ratio
78.3
                   
73.9
                     
66.7
                     
67.1
                     
Catastrophe losses and reinstatement premiums
(9.2)
                    
(7.5)
                      
(2.3)
                      
(3.2)
                      
Prior year development net of premium adjustments
(0.3)
                    
(1.4)
                      
(1.5)
                      
(1.9)
                      
Net reserve discount benefit (charge)
(0.1)
                    
0.2
                       
0.9
                       
1.2
                       
Accident year loss ratio, as adjusted
68.7
                   
65.2
                     
63.8
                     
63.2
                     
Acquisition ratio
18.1
                   
19.9
                     
19.7
                     
19.9
                     
General operating expense ratio
12.3
                   
14.7
                     
14.9
                     
14.2
                     
Expense ratio
30.4
                   
34.6
                     
34.6
                     
34.1
                     
Combined ratio
108.7
                 
108.5
                   
101.3
                   
101.2
                   
Catastrophe losses and reinstatement premiums
(9.2)
                    
(7.5)
                      
(2.3)
                      
(3.2)
                      
Prior year development net of premium adjustments
(0.3)
                    
(1.4)
                      
(1.5)
                      
(1.9)
                      
Net reserve discount benefit (charge)
(0.1)
                    
0.2
                       
0.9
                       
1.2
                       
Accident year combined ratio, as adjusted
99.1
                   
99.8
                     
98.4
                     
97.3
                     
AIG Property Casualty
Accident Year Combined Ratio, As Adjusted
AIG Life and Retirement Premiums and Deposits
($ in millions)
Book Value Per Common Share - Ex. AOCI
($ in millions, except per share data)
Full Year
Full Year
December 31,

American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 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: @AIG_LatestNews | 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.