AIG General Insurance and Life & Retirement Earnings
APTI of $1.7B reflects strong General Insurance underwriting results and premium
growth, significantly lower CATS, and 26% growth in Life & Retirement APTI
($M, except per common share amounts)
Adjusted Pre-tax Income (Loss):
General Insurance
Life and Retirement
Other Operations¹
2Q20 2Q21 Variances
Key Takeaways
General Insurance APTI of $1.2B reflects strong
underwriting results and higher NII; the combined ratio
was 92.5, a 13.5 pt improvement from 2Q20 benefitting
from significantly lower CATS as well as continued
underwriting improvement and expense discipline
Life and Retirement reported APTI of $1.1B for 2Q21, up
26% from $895M in 2Q20, due to favorable impacts from
equity market performance driving higher alternative
investment returns, principally in private equities, and
higher fee income; partially offset by higher deferred policy
acquisition costs and sales inducement assets
amortization and reserves. Additionally, 2Q21 had lower
favorable short-run impacts from interest rates and credit
spreads as 2Q20 included a large yield enhancement
while 2Q21 included higher call and tender income and
commercial mortgage loan prepayments. Life Insurance
APTI of $20M, up $18M from $2M in 2Q20 is driven, in
part, due to lower COVID-19 mortality in 2Q21
$175 $1,194 $1,019
895 1,124
(279) (610)
229
(331)
Total adjusted pre-tax income
$791 $1,708
AATI attributable to AIG common shareholders
$561 $1,331
$917
$770
AATI per diluted share attributable to AIG
common shareholders
$0.64 $1.52
$0.88
Net income (loss) attributable to AIG common
shareholders
($7,936) $91
$8,027
Total adjusted return on common equity
4.5% 10.5%
General Insurance Underwriting Ratios:
72.6% 61.3%
6.0 pts
B/(W)
11.3 pts
Catastrophe losses and reinstatement premiums
Prior year development (PYD)
Accident year loss ratio, as adjusted
Expense ratio
Combined ratio
Accident year combined ratio (AYCR), as adjusted
(11.9%) (2.1%)
0.8% 0.7%
61.5% 59.9%
33.4% 31.2%
106.0% 92.5%
94.9% 91.1%
9.8 pts
(0.1) pts
1.6 pts
2.2 pts
13.5 pts
3.8 pts
1) Other Operations is primarily comprised of corporate, our institutional asset management business and consolidation and eliminations.
AIG
Loss ratio
Less: impact on loss ratio
■
Other Operations adjusted pre-tax loss (APTL) was
$610M in 2Q21, including $94M of reductions from
consolidation and eliminations, compared to APTL of
$279M, including $53M of additions from consolidation
and eliminations, in 2Q20. The increase in consolidation
and eliminations APTL reflects the impact of consolidated
investment entities. Before consolidation and eliminations,
the increase in APTL primarily reflects the impact of
Fortitude, which was sold and deconsolidated in 2Q20 and
had APTI of $96M in 2Q20. Additionally, 2Q21 results also
includes net unfavorable PYD of $65M, primarily related to
Blackboard and other run-off businesses, and increased
incentive program accrual to reflect strong performance to
date
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