Investor Presentaiton
4Q19 & 4Q18 noteworthy items
4Q18 - Income / (Loss)
4Q19 - Income / (Loss)
($ in millions)
Catastrophe losses, net of reinsurance¹
Pre-tax After-tax4
($798)
EPS
(diluted)
($630) ($0.71)
Pre-tax After-tax4
EPS
(diluted)
($413) ($326) ($0.36)
(Unfavorable) favorable prior year loss reserve development, net of
reinsurance
(365)
(288) (0.32)
153
121
0.13
Actuarial assumption update in Legacy Life and Retirement run-off
(105)
(83) (0.09)
Investment Performance:
Better (worse) than expected alternative investment returns²
(340)
(269)
(0.30)
59
47
0.05
Better (worse) than expected DIB and GCM returns
(31)
(24)
(0.03)
60
60
47
0.05
Better than expected fair value changes on Fixed Maturity Securities -
Other accounted under fair value option²
50
50
40
0.04
29
29
23
0.03
Changes in the fair value of Equity Securities³
Total noteworthy items
(143)
(113) (0.13)
($1,732)
($1,368)
($1.54)
($112)
($88)
($0.10)
AIG
1) 4Q19 includes losses of ($411M) and ($2M), pre-tax, from General Insurance and Legacy General Insurance Run-off Lines, respectively. 4Q18 includes a loss of
($826M) and income of $28M, pre-tax, from General Insurance and Legacy General Insurance Run-off Lines, respectively.
2) The annualized expected rate of return is 8% for alternative investments and 6% for fair value option fixed maturity securities for all periods presented; fair value
option fixed maturity securities includes the fair value changes on the DIB and GCM asset portfolios.
3) Beginning 1Q19, changes in the fair value of equity securities are excluded from APTI.
4) Computed using a U.S. statutory effective tax rate of 21%.
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