AIG Earnings and Investment Portfolio Report
APTI of $1.1B reflects continued improvement in Commercial Lines AYCR, as
adjusted, strong Life and Retirement results reflecting higher NII, APTI basis
($M, except per common share amounts)
Adjusted pre-tax income (loss):
General Insurance
Life and Retirement
Other Operations¹
4Q19
4Q20 Variances
$778
$809
$31
Total adjusted pre-tax income
$1,211
AATI attributable to AIG common shareholders
858 1,027
(425) (720) (295)
$1,116 ($95)
$923 $827 ($96)
169
AATI per diluted share attributable to
$1.03 $0.94 ($0.09)
AIG common shareholders
Net income (loss) attributable to
$922
AIG common shareholders
($60) ($982)
Consolidated adjusted ROCE
7.3%
General Insurance underwriting ratios:
Loss ratio
65.6% 70.2%
6.7% (0.6) pts
B/(W)
(4.6) pts
Less: impact on loss ratio
Catastrophe losses and reinstatement premiums
Prior year development
2.2%
(6.5%) (9.0%)
(0.9%)
Adjustments for ceded premium under reinsurance
contracts and other
0.3%
0.0%
(2.5) pts
(3.1) pts
(0.3) pts
Accident year loss ratio, as adjusted
61.6%
Expense ratio
34.2%
60.3%
32.6%
Accident year combined ratio, as adjusted
95.8%
92.9%
Calendar year combined ratio
99.8% 102.8%
1.3 pts
1.6 pts
2.9 pts
(3.0) pts
AIG
Key Takeaways
General Insurance APTI increased by $31M primarily due to:
2.9 pt improvement in AYCR, as adjusted, and
$214M increase in NII, APTI basis, reflecting higher
alternative investment income;
partially offset by $134M increase in CATS primarily due
to higher non-COVID-19 CATs and the ongoing impact of
COVID-19 CATS related to Travel, Contingency and
Validus Reinsurance, Ltd., and
3.1 pt decrease in prior year development, net of
reinsurance, (PYD) ratio reflecting unfavorable PYD in
4Q20 compared to favorable PYD in 4Q19; 4Q19 included
favorable PYD from California wildfire subrogation
recoverables
Life and Retirement APTI increased $169M reflecting higher
NII driven by private equity returns, which are reported on a
one quarter lag, and higher call and tender income due to
favorable impacts from lower interest rates and tighter credit
spreads as well as lower general operating expenses (GOE).
The increase in APTI was partially offset by base spread
compression and, in Life Insurance, impacts from COVID-19
mortality claims
Other Operations adjusted pre-tax loss (APTL) was $720M,
including $292M of reductions from consolidation and
eliminations, compared to APTL of $425M, including $134M
of reductions from consolidation and eliminations, in the prior
year quarter. The increase in APTL in consolidation and
eliminations reflects the impact of consolidated investment
entities. Before consolidation and eliminations, the increase
in APTL was primarily due to lower NII associated with
available for sale securities; the sale of Fortitude in 2Q20,
which had APTI of $70M in 4Q19; and increased interest
expense related to debt issuances in 2Q20
1) Other Operations is primarily comprised of corporate, our institutional asset management business and consolidation and eliminations.
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