AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2020

American International Group, Inc. (AIG) reported a net loss attributable to common shareholders of $5.97 billion for the year ended December 31, 2020, a significant shift from a net income of $3.33 billion in 2019. This decline was primarily driven by higher catastrophe losses in General Insurance, impacted by COVID-19 and other events, as well as unfavorable impacts from COVID-19 mortality in Life and Retirement. Lower investment returns due to yield compression and widening credit spreads also contributed to the loss. The company announced its intention to separate its Life and Retirement business in October 2020, a strategic move aimed at maximizing shareholder value by establishing two market-leading companies. Despite the net loss, AIG highlighted continued underwriting discipline and expense management as key drivers for ongoing improvement. The company maintained strong capitalization with $66.36 billion in shareholders' equity as of December 31, 2020, and had $15.0 billion in liquidity sources, demonstrating financial flexibility. The General Insurance segment experienced an underwriting loss of $1.02 billion in 2020, compared to an underwriting income of $89 million in 2019, with North America's underwriting loss increasing significantly due to higher catastrophe losses. The Life and Retirement segment reported adjusted pre-tax income of $3.53 billion, largely stable compared to the prior year, showcasing resilience in its diverse product portfolio. The company's priorities for 2021 include the separation of the Life and Retirement business, focusing on business mix and targeted growth, underwriting excellence, and optimizing risk management.