Investor Presentaiton
2Q19 and 2Q20 noteworthy items
($M, except per share amounts)
General Insurance - Catastrophe losses, net of reinsurance, ex. COVID-19
General Insurance - Catastrophe losses related to COVID-19
Favorable prior year loss reserve development, net of reinsurance³
2Q19 - Income / (Loss)
2Q20 - Income / (Loss)
Pre-tax
After-tax¹
EPS
Diluted²
1
Pre-tax
After-tax1
EPS-
diluted²
($174) ($137) ($0.15)
($216) ($171) ($0.20)
(458)
(362) (0.42)
63
50
0.06
76
60
0.07
Investment Performance:
Better (worse) than expected alternative investment returns4
199
157
0.18
(246)
(194)
(0.22)
Better (worse) than expected Direct Investment Book (DIB) and Global
Capital Markets (GCM) returns
14
11
0.01
24
19
0.02
Better (worse) than expected fair value changes on Fixed Maturity
Securities Other accounted under FVO4
(32)
(25)
(0.03)
303
239
0.28
Total noteworthy items
-
APTI basis
$70
$55
$0.06 ($517) ($408)
($0.47)
Other Noteworthy Items:
Loss on sale and deconsolidation of Fortitude - included in GAAP5
($8,412) ($6,756)
($7.79)
1) Computed using a U.S. statutory tax rate of 21%.
2) Computed using weighted average diluted shares on an operating basis, which is provided on page 6 of the 2Q20 Financial Supplement.
3) Includes General Insurance and Legacy General Insurance Runoff.
AIG 4) The annualized expected rate of return for 2Q19 and 2Q20 is 8% and 6% for alternative investments and 6% and 4% for FVO fixed maturity securities, respectively; FVO
fixed maturity securities includes the fair value changes on the DIB and GCM asset portfolios.
5) The effective tax rate differs from the statutory tax rate of 21% primarily due to tax effects of the Majority Interest Fortitude Sale.
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