AIG Earnings and Investment Portfolio Report slide image

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. 22 22
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