American International Group, Inc. (AIG) Balance Sheet

The equity decline outpaces the asset decline, which tilts the leverage profile toward greater liability dependence over the period. Liabilities contracted only from $124.4B to $123.0B, so the balance sheet is shrinking mainly through equity reduction rather than deliberate deleveraging. This pattern is consistent with buybacks and separation-related adjustments, but the supplied data cannot isolate their relative weight, so investors should monitor whether equity stabilizes as earnings continue.

Reported loss ratios near 66% in recent quarters are reasonable on their face, but they do not reveal whether long-tail casualty reserves fully reflect severity trends tied to social inflation. Reserve data such as prior-year development is not present in the supplied figures, so reserve adequacy cannot be confirmed from this dataset. The persistent scale of claims outflows indicates that reserve accuracy materially affects future equity, warranting further investigation of development trends.

Statutory RBC ratios are not included in the supplied data, so regulatory capital adequacy cannot be directly assessed. The falling equity ratio suggests a thinner buffer relative to the liability base, which may limit flexibility for large buybacks or acquisitions. Investors should monitor RBC disclosures to determine whether the reduced equity ratio still leaves comfortable regulatory headroom.