Investor Presentaiton
FY'19 APTI of $5.5B increased $4.1B from FY'18 with lower CATS, net
favorable PYD, improved General Insurance AY underwriting results and
higher NII
($ in millions, except per common share amounts)
FY'18 FY'19 Variances
Adjusted Pre-tax Income (Loss):
General Insurance
Life and Retirement
Other Operations¹
Total Core
Legacy Portfolio
Total adjusted pre-tax income (loss)
($469) $3,533 $4,002
3,190 3,458
268
(1,525) (2,014)
(489)
1,196 4,977
213
$1,409 $5,478
3,781
501
AATI* attributable to AIG common shareholders
AATI* per diluted share attributable to AIG
common shareholders
$1,064 $4,084
$1.17 $4.59
288
$4,069
$3,020
$3.42
Net income (loss) attributable to AIG common
shareholders
($6) $3,326
Consolidated adjusted ROCE
2.1% 8.3%
$3,332
6.2 pts
General Insurance Underwriting Ratios:
Loss ratio
75.7% 65.2%
B/(W)
10.5 pts
Less: impact on loss ratio
Catastrophe losses and reinstatement premiums
(10.5%) (4.8%)
Prior year development
(1.5%) 1.1%
Adjustments for ceded premium under reinsurance
0.3% 0.1%
5.7 pts
2.6 pts
(0.2) pts
contracts and other
Accident year loss ratio, as adjusted
64.0% 61.6%
Expense ratio
Combined ratio
Accident year combined ratio, as adjusted
35.7% 34.4%
111.4% 99.6%
99.7% 96.0%
2.4 pts
1.3 pts
11.8 pts
3.7 pts
Key Takeaways
■ General Insurance APTI increased significantly
primarily due to:
lower CATS of $1.3B,
net favorable PYD of $294M,
improved AYCR, as adjusted, of 96.0%, and
and increased NII reflecting higher alternative
investment income
■ Life and Retirement APTI increased due to
favorable impact from equity market returns,
favorable impacts from lower interest rates
resulting in higher income on fair value option
bonds and gains on calls, and higher base
investment spread resulting from new business;
offset by base investment spread compression,
impacts from Life reserve refinements, impacts
from the year over year annual actuarial
assumption updates and lower but still favorable
mortality
■ Other Operations APTL before consolidation and
eliminations, increased due to higher GOE and an
increase in interest expense from consolidated
investment entities
Legacy Portfolio APTI increased primarily due to
higher NII and a loss recognition expense on
certain Accident and Health cancer and disability
blocks in 2018
* Refers to financial measure not calculated in accordance with generally accepted accounting principles (Non-GAAP); definitions and abbreviations of Non-GAAP
measures and reconciliations to their closest GAAP measures can be found in this presentation under the heading Glossary of Non-GAAP Financial Measures and
AIG Non-GAAP Reconciliations.
1) Includes corporate GOE not allocated to segments, certain compensation expenses not distributed to reporting segments, interest and other expenses as well as
consolidation, eliminations and other adjustments.
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