American International Group, Inc. New · NYSE:AIG
American International Group, Inc. New — American International Group — Investor Presentation (May 2025)
37 slides from American International Group, Inc. New's investor presentation, May 5, 2025
Slide 1: Additional Pay for Performance Information
Additional Pay for Performance Information May 5, 2025
Slide 2: Table of Contents
Table of Contents Item Page Executive Summary 3 Key Elements of Our Compensation Program 4 We Listen to Our Shareholders 6 Appendices • Appendix A - Pay Quantum 7 • Appendix B - Our Compensation Decision-Making Process 13 • Appendix C – Pay for Performance 15 • Appendix D – Peer Groups 18 • Appendix
Slide 3: Executive Summary
Executive Summary • AIG has undergone a remarkable transformation under Peter Zaffino's leadership • Unprecedented improvement in underwriting profitability • Significant multi-year improvement across both loss and expense ratios • Historic limit reduction with net written premiums growth • Impressi
Slide 4: Key Elements of Our Compensation Program (1/2)
Key Elements of Our Compensation Program (1/2) 2024 was a standout year for the company defined by strong financial performance. We paid for this performance and considered the true value of leadership when making compensation decisions. ▪ 2024 saw excellent underwriting results, meaningful growth i
Slide 5: Key Elements of Our Compensation Program (2/2)
Key Elements of Our Compensation Program (2/2) The CMRC uses data for two separate peer groups to support the key principles of our compensation philosophy, including retaining and attracting the best talent and paying for performance. ▪ Our Compensation Peer Group reflects our competitors for talen
Slide 6: We Listen to Our Shareholders
We Listen to Our Shareholders What We Heard How We Responded In 2024, we reached out to 46 investors representing Overall endorsement of ▪ We have continued to ensure that the CEO’s total approximately 70% of shares CEO’s continued leadership compensation promotes retention while providing an outsta
Slide 7: Appendix A Pay Quantum
APPENDIX A Pay Quantum
Slide 8: AIG Share Performance Since Major Events
AIG Share Performance Since Major Events Stock up 161% since Peter Zaffino was announced as CEO and 80% since his appointment 90 81.52 80 76.02 70 60.59 60 54.18 50 45.31 40 31.26 30 20 10 0 CEO Announcement CEO Appointment CRBG IPO Special Award CRBG Deconsolidation April 30, 2025 (10/26/2020) (3/1
Slide 9: Unprecedented Improvement in Underwriting Profitability
Unprecedented Improvement in Underwriting Profitability 1 CEO appointed 3/1/2021 2008-20182 $33B underwriting loss Investor Day presentation slide 14 For footnotes, see Appendix F 9
Slide 10: Significant Multi-Year Improvement Across both Loss and Expense Ratios
Significant Multi-Year Improvement Across both Loss and Expense Ratios CEO appointed 3/1/2021 Calendar year Combined Ratio (%) Fully loaded Expense Ratio2 Loss Ratio Investor Day presentation slide 12 For footnotes, see Appendix F 10
Slide 11: Historic Limit Reduction with NPW Growth
Historic Limit Reduction with NPW Growth Global Commercial Gross Limit ($T) vs. Global Commercial Net Premiums Written ($B) Global Commercial NPW1 ($B) Global Commercial Gross Limit ($T) CEO appointed 3/1/2021 Investor Day presentation slide 15 For Footnote, see Appendix F 11
Slide 12: AIG & CRBG Combined Market Cap Increased 63%
AIG & CRBG Combined Market Cap Increased 63% since Peter Zaffino Took Over as CEO ($ B) AIG & CRBG combined market cap has increased 138% since Peter Zaffino was announced as CEO (10/26/2020) $70.0 and 63% since Peter Zaffino Took Over as CEO (3/1/2021) $64.0 $59.8 $16.4 $60.0 $54.6 $14.7 $13.4 $50.
Slide 13: Appendix B Our Compensation Decision-Making Process
APPENDIX B Our Compensation Decision-Making Process
Slide 14: CMRC Decision-Making Process
CMRC Decision-Making Process The CMRC has an established process for executive compensation decision-making and in a typical year, during the first quarter, it: • Assesses short-term incentive plan performance against business goals as well as individual performance of each NEO for the prior year an
Slide 15: Appendix C Pay for Performance
APPENDIX C Pay for Performance
Slide 16: 2024 Highlights
2024 Highlights Reported Adjusted* Delivered Strong Financial Performance ▪ Produced strong calendar year combined ratio of 91.8% and accident year combined ratio, as adjusted* of 88.2%. ▪ Delivered $1.9 billion of underwriting income, which contributed to over $7 billion of cumulative underwriting
Slide 17: Executive Compensation Reinforces Shareholder Value Creation
Executive Compensation Reinforces Shareholder Value Creation and Aligns with Pay and Business Outperformance AIG Share Price Performance vs Peers and S&P 500 Since CEO Appointment (3/1/2021) 130.0% AIG CB TRV HIG WRB CRBG 110.0% 90.0% AIG - 70.0% +80% 50.0% S&P - 30.0% +43% 10.0% -10.0% -30.0% FactS
Slide 18: Appendix D Peer Groups
APPENDIX D Peer Groups
Slide 19: 2024 Peer Groups
2024 Peer Groups Relative TSR Peer Group for 2024 PSU Compensation Peer Group Awards ▪ The Allstate Corporation ▪ AXA S.A. ▪ American Express Company ▪ Allianz SE* ▪ Bank of America Corporation ▪ Chubb Limited ▪ BlackRock, Inc. ▪ CNA Financial Corporation ▪ Capital One Financial Corp. ▪ The Hartford
Slide 20: Talent a Key Factor in Peer Group Inclusion
Talent a Key Factor in Peer Group Inclusion Key talent has been recruited from the members of our Compensation Peer Group… • 42% of CEO Direct Reports • 28% of Senior Executives hired in last two years • 22% of Senior Executives hired in last five years • 8% higher retention rates • 27% rated top pe
Slide 21: Appendix E Compensation Drives KPI Outcomes
APPENDIX E Compensation Drives KPI Outcomes
Slide 22: 2024 Short-Term Incentive Program
2024 Short-Term Incentive Program 2025 Proxy Statement page 43 22
Slide 23: Our Long-Term Incentive Program Accelerated Top-Quartile Financial Performance
Our Long-Term Incentive Program Accelerated Our Relentless Drive for Top-Quartile Financial Performance (1) (1) The Diluted AATI Attributable to AIG Common Shareholders Per Share* metric is no longer normalized 2025 Proxy Statement page 43 23
Slide 24: Industry-Leading Operating EPS Growth Over Short- and Long-Term Horizons
Industry-Leading Operating EPS Growth Over Both Short- Term and Long-Term Horizons AIG Operating EPS (ex. ValRe & CRS and CRBG) Validus Re & CRS Contribution CRBG Contribution Operating Earnings Per Share ($) 2025-2027F CAGR +20% 2 Corebridge and Validus Re contributed 50% + of EPS 1 Investor Day pr
Slide 25: Compensation Program Structured to Support Balance Sheet Strength
Our Compensation Program is Purposefully Structured to Reinforce and Support Balance Sheet Strength Total debt and preferred stock to total capital leverage ratio and debt structure ($B) 1 AIG Financial & Hybrid Debt CRBG Financial & Hybrid Debt Total Debt & Preferred Stock Preferred Stock to Total
Slide 26: Appendix F Important Information
APPENDIX F Important Information
Slide 27: Endnotes
Endnotes Unprecedented Improvement in Underwriting Profitability 1. Underwriting results have been restated to exclude Validus Re and Crop Risk Services for all periods, as applicable. 2. For 2015 and prior, the results include Property Casualty run-off businesses, including excess workers’ compensa
Slide 28: Cautionary Statement
Cautionary Statement Following the deconsolidation of Corebridge, the historical financial results of Corebridge, for all periods presented, are reflected in AIG’s consolidated financial statements as discontinued operations in accordance with generally accepted accounting principles in the United S
Slide 29: Non-GAAP and Comparable Measures
Non-GAAP and Comparable Measures Accident year loss and Accident year combined ratios, as adjusted (Accident year loss ratio, ex -CAT and Accident year combined ratio, ex-CAT) Both the accident year loss and accident year combined ratios, as adjusted, excludes catastrophe losses (CATs) and related r
Slide 30: FY23 and FY24 Ratio Reconciliation
Item FY 23 FY24 As Reported ValRe, CRS, Comparabl As Reported Travel 1 e Basis Loss Ratio 58.9% 0.0% 58.9% 59.8% Prior Year 1.4% 0.2% 1.6% 1.4% Development, net of reinsurance and prior year premiums Accident Year Loss 56.0% 0.2% 56.2% 56.2% Ratio, as adjusted Acquisition Ratio 19.5% -0.3% 19.2% 19.
Slide 31: Fully Loaded Expense Ratio, Global Commercial NPW, Underwriting Income
Fully Loaded Expense Ratio Global Commercial Net Premiums Written Underwriting Income (Loss) 31
Slide 32: Net Premiums Written on a Comparable Basis
Net Premiums Written (NPW) on a Comparable Basis NPW on a comparable basis reflects year-over-year comparison on a constant dollar basis adjusted for the sale of Validus Re, CRS and Travel (dollars in millions) Item FY23 FY24 As Foreign ValRe, CRS, Comparable As Reported Travel Comparable Reported E
Slide 33: Adjusted After-tax Income attributable to AIG common shareholders (AATI)
Adjusted After-tax Income attributable to AIG common shareholders (AATI) AATI is derived by excluding the tax effected APTI adjustments described above, dividends on preferred stock and preferred st ock redemption premiums, noncontrolling interest on net realized gains (losses), other non-operating
Slide 34: Noncontrolling Interest and Reconciliation Footnotes
(1) Noncontrolling interest primarily relates to Corebridge and is the portion of Corebridge earnings that AIG did not own. Corebridge is consolidated until June 9, 2024. The historical results of Corebridge owned by AIG are reflected in the Income (loss) from discontinued operations, net of income
Slide 35: Core Operating Book Value Per Share
Book value per share, excluding Investments AOCI, deferred tax assets (DTA) and AIG’s ownership interest in Corebridge (Core operating book value per share) Core operating book value per share is used to show the amount of our net worth on a per share basis after eliminating Invest ments AOCI, DTA a
Slide 36: Return on Equity (ROE) — Adjusted Return on Equity
Return on Equity (ROE) — Adjusted After-tax Income Excluding Investments related cumulative unrealized gains and losses recorded in Accumulated Other Comprehensive Income (Loss) (AOCI) adjusted for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets (collectively
Slide 37: Diluted Normalized AATI Per Share
Diluted Normalized Adjusted After-tax Income (AATI) Attributable to AIG Common Shareholders Per Share Diluted normalized AATI attributable to AIG common shareholders per share further adjusts diluted AATI attributable to AIG common shareholders per share for the effects of certain volatile or market
American International Group — Investor Presentation (May 2025) on 6ix