Investor Presentaiton
1Q20 APTI of $172M declined from 1Q19 due to NII and COVID-19
($ in millions, except per common share amounts)
1Q19
1Q20 Variances
Adjusted Pre-tax Income (Loss):
General Insurance
$1,268
Life and Retirement
Other Operations¹
Total Core
Legacy Portfolio
Total adjusted pre-tax income
924
(457) (535)
$501 ($767)
574 (350)
(78)
1,735 540
(1,195)
112 (368)
$1,847
$172
(480)
($1,675)
AATI* attributable to AIG common shareholders
$1,388 $99
($1,289)
AATI* per diluted share attributable to AIG
common shareholders
Net income attributable to AIG common
shareholders
Consolidated adjusted ROCE
General Insurance Underwriting Ratios:
Loss ratio
Less: impact on loss ratio
$1.58 $0.11
($1.47)
$654 $1,742 $1,088
11.6% 0.8% (10.8) pts
63.1% 66.8%
B/(W)
(3.7) pts
Catastrophe losses and reinstatement premiums
(2.7%) (6.9%)
(4.2) pts
Prior year development
1.0% 0.9%
(0.1) pts
Adjustments for ceded premium under reinsurance
contracts and other
0.4% 0.0%
(0.4) pts
Accident year loss ratio, as adjusted
61.8% 60.8%
1.0 pts
Expense ratio
Calendar year combined ratio
34.3% 34.7%
97.4% 101.5%
96.1% 95.5%
(0.4) pts
(4.1) pts
0.6 pts
Key Takeaways
General Insurance APTI declined primarily due to:
- lower NII of $588M reflecting alternative investment
losses primarily driven by hedge funds due to
unfavorable equity market returns in the current quarter
- higher CATS of $419M, which includes $272M for
estimated COVID-19 losses related to Travel,
Contingency, Commercial Property, Trade Credit,
Workers' Compensation and Validus Re. The
remainder of the CATS were primarily weather-related
- partially offset by a 1 point improvement in AYLR, as
adjusted
Life and Retirement APTI declined primarily due to
declines in equity markets and widening spreads in credit
markets triggered by the ongoing COVID-19 crisis
Other Operations APTL included $84M of reductions
from consolidation, eliminations and other adjustments.
Before consolidation, eliminations and other adjustments,
the increase was primarily due to higher general
operating expenses (GOE) of $66M from higher
compensation, including the issuance of a $500 grant to
each employee globally, which equates to $30M in the
aggregate. In addition, the loss included higher
technology costs, partially offset by higher NII associated
with consolidated investment entities
Legacy Portfolio APTL primarily driven by lower NII due
to mark-to-market losses on FVO securities and
alternative investment losses
Accident year combined ratio, as adjusted
AIG
* 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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