AIG Earnings and Investment Portfolio Report
General Insurance: 1.9 pts better AYCR, as adjusted; 3.4 pt improvement in Global
Commercial Lines due to improved business mix as a result of underwriting actions
Net Premiums Written ($M)
($M)
FY'19
FY'20
Net premiums written
$25,092 $22,959
Global Commercial Lines
Global Personal Insurance
Net premiums earned
$26,438
$23,662
+3.0%
Loss and loss adjustment expense
$15,057
$15,509
17,246
16,803
$10,035
-25.8%
Acquisition expenses
5,774
4,821
$7,450
$6,833
$6,874
General operating expenses
3,329
3,062
$6,769
Underwriting income (loss)
$89 ($1,024)
Net investment income
$3,444
$2,925
$8,224
$8,635
Change
primarily
driven by the
formation of
Syndicate
2019 and
lower Travel
premiums
$6,301
$3,266
due to
COVID-19
Adjusted pre-tax income
$3,533 $1,901
$1,149
FY'19
FY'20
Note: Impact of CATS1, pre-tax
($1,257)
($2,428)
■North America
FY'19
International
FY'20
Calendar Year Combined Ratios²
Accident Year Combined Ratios (excl. CATs) walk
AYCR, as adjusted,
improved 1.9 pts
94.1%
1.1%
33.3%
+4.7 pts
104.3%
99.6%
4.8%
with 5.5 pt
10.3%
96.0%
12.6%
increase in
12.9%
0.8%
CATS
21.8%
34.4%
20.4%
61.6%
60.8%
-1.1%
-0.1%
FY'19
FY'20
■AYLR, As Adj.
■Acq. Ratio
GOE Ratio ■PYD Ratio ■CAT Ratio
61.6%
60.8%
FY19
AYLR
U/W Actions/Mix
Expense Ratio
FY20
■AYLR, As Adj.
Expense Ratio
1) FY'20 includes non-COVID-19 CATS of $1,335M and COVID-19 CATS of $1,093M, pre-tax.
AIG 2) FY'19 CYCR includes adjustments for ceded premium under reinsurance contracts and other of (0.1) pts.
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