Investor Presentaiton
2Q20 Pre-tax loss of $9.7B; APTI of $803M reflects improvement in AY
adjusted Commercial Lines results and strong performance in Life &
Retirement, offset by COVID-19 and private equity losses
($M, except per common share amounts)
Pre-tax income (loss) from continuing operations
Adjusted Pre-tax Income (Loss):
General Insurance
Life and Retirement
Other Operations¹
Total Core
2Q19 2Q20 Variances
$1,837 ($9,661) ($11,498)
Key Takeaways
General Insurance APTI declined by $805M primarily due
- $500M increase in CATs primarily due to COVID-19
and civil unrest
- $315M reduction in NII, primarily due to private equity
losses, which are generally reported on a one quarter
lag and reflect 1Q20 market levels
1,558
Legacy Portfolio
119
546
257
$980 $175 ($805)
1,049 881 (168)
(471) (510) (39)
(1,012)
to:
Total adjusted pre-tax income*
$1,677
AATI* attributable to AIG common shareholders
$803
$571
AATI* per diluted share attributable to
AIG common shareholders
Net income (loss) attributable to
AIG common shareholders
Consolidated adjusted ROCE*
General Insurance Underwriting Ratios:
Loss ratio
Less: impact on loss ratio
Catastrophe losses and reinstatement premiums
Prior year development
Accident year loss ratio, as adjusted
Expense ratio
Calendar year combined ratio
Accident year combined ratio, as adjusted
AIG
138
($874)
$1,272
($701)
$1.43 $0.66 ($0.77)
$1,102 ($7,936) ($9,038)
10.4% 4.6% (5.8) pts
63.0%
72.6%
Better
(Worse)
(9.6) pts
(2.6%) (11.9%)
(9.3) pts
0.9% 0.8% (0.1) pts
61.3% 61.5% (0.2) pts
34.8% 33.4%
1.4 pts
97.8% 106.0% (8.2) pts
96.1% 94.9% 1.2 pts
■
- Partially offset by very strong improvement in
Commercial Lines accident year adjusted underwriting
results
Life and Retirement APTI declined $168M largely due to
private equity losses, continued spread compression and
elevated mortality due to COVID-19, partially offset by
higher other yield enhancements income and lower DAC
amortization and lower Variable Annuities reserves
resulting from higher equity markets in 2Q20
Other Operations adjusted pre-tax loss (APTL) increased
primarily due to lower NII on consolidated investment
entities and increased interest expense related to $4.1B
of debt issued during the quarter
Legacy APTI increased primarily due to an increase in
NII, even though 2Q20 includes two months of Fortitude
income compared to three months in 2Q19; Legacy APTI
for 2Q19 and the first two months of 2Q20 are reduced in
AATI for AIG due to Carlyle's 19.9% minority interest in
Fortitude
* 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 Non-GAAP Reconciliations.
1) Includes corporate GOE, certain compensation expenses, interest and other expenses not allocated to segments as well as consolidation, eliminations and other adjustments.
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