Investor Presentaiton
Other Operations
($ in millions)
1Q19
1Q20
Corporate (Parent and Service Companies):
Π
General operating expenses
($181)
($244)
Interest expense
(260)
(259)
All other income (expense), net
41
20
Total Corporate (Parent and Service Companies)
(400)
(483)
Consolidated investment entities
22
48
Blackboard
(9)
(16)
Adjusted pre-tax loss before consolidation
(387)
(451)
and eliminations
Consolidation, eliminations and other adjustments:
Consolidated investment entities1
(92)
(104)
Other²
22
20
Total consolidation, eliminations and other adjustments
Adjusted pre-tax loss
(70)
(84)
($457)
($535)
AIG
Key Takeaways:
■ Revised and simplified the presentation to help identify
key drivers of APTI
☐
Other Operations consists of businesses and items not
attributed to the General Insurance and Life and
Retirement segments or the Legacy Portfolio. It
includes AIG Parent corporate and interest expense;
consolidated investment entities; Blackboard; deferred
tax assets related to tax attributes; and intercompany
eliminations
APTL included $84M of reductions from consolidation,
eliminations and other adjustments. Before
consolidation, eliminations and other adjustments, the
increase in the pre-tax loss was primarily due to higher
GOE from higher compensation, including the issuance
of a $500 grant to each employee globally, which
equates to $30M in the aggregate, to help with their
unanticipated costs due to COVID-19. In addition, the
loss included higher technology costs, partially offset by
higher net investment income associated with
consolidated investment entities
$33M of incremental GOE costs related to COVID-19
including a $30M employee grant plus associated
remote working IT equipment
■ At the end of March, AIG decided to place Blackboard
U.S. Holdings, Inc. (Blackboard), AIG's technology-
driven subsidiary, into run-off. As a result of this
decision, AIG recognized a pre-tax loss of $210 million,
primarily consisting of asset impairment charges; this
charge did not impact adjusted pre-tax income
1) Consolidation, eliminations and other adjustments - consolidated investment entities represents the elimination of the intercompany net investment income
recorded by the General Insurance and Life and Retirement subsidiaries for their investments in consolidated investment entities.
2) Consolidation, eliminations and other adjustments - Other represents eliminations of intercompany transactions other than consolidated investment entities
between Parent and the General Insurance and Life and Retirement subsidiaries.
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