Worker’s Compensation 2014 TWU Benefit Conference-August 20

1. Worker’s Compensation 2014TWU Benefit Conference-August 20

2. Overview • Organization • Integration Update • New Metrics - 5-Year Trend • Team Assignments • Initiatives: Nurse Case Management • Questions

3. Organization

4. Work Comp Integration Update • Following a selection process, Sedgwick was chosen as the Claims Administrator for the combined airline. • Effective 9/1/2014, Sedgwick will be handling all workers’ compensation claims for the combined airline which includes five (5) entities: American Airlines, US Airways, Envoy, Piedmont and PSA. • Over 100,000 employees and over 15 different union contract • Annual expected volume of over 9,500 injuries, which is an average of 26 injuries per day • When an employee is injured on the job, we expect Sedgwick to perform a thorough accident investigation, ensure quality medical care, and accurate wage replacement in the most expeditious manner possible. This will benefit our employees by expediting their recovery and assure a prompt and safe return to work, and it will further benefit American Airlines Group by reducing workers’ compensation costs.

5. Total Injuries with Cost (5 Year Trend) • Includes on-the-job injuries with any medical and/or wage replacement costs • Injury rate Average: Injury per 200,000 risk hrs. worked (200,000 = average # of risk hrs. worked by 100 people in 1 year)

6. Lost Time Injuries (5 Year Trend) • Includes on-the-job injuries with one or more off work day(s) • Injury rate Average: Injury per 200,000 risk hrs. worked (200,000 = average # of risk hrs. worked by 100 people in 1 year)

7. Team Assignment East • AAG Risk Management will be split by state to align with the Sedgwick offices and Operations

8. Team Assignment West

9. Questions • How can we help you, the benefit coordinator, going forward? • Q&A