AIG General Insurance and Life & Retirement Earnings
2Q20 and 2Q21 noteworthy items
($M, except per share amounts)
CATS excluding General Insurance COVID-193
General Insurance COVID-19 CATS
2Q20
2Q21
Pre-tax After-tax¹
EPS
diluted²
-
EPS-
Pre-tax After-tax1
diluted²
$216
$171
$0.20
$120
$95
$0.11
458
362
0.42
Reinstatement premiums related to catastrophes
20
16
0.02
20
16
0.02
Favorable (unfavorable) prior year development4
76
60
0.07
(14)
(11)
(0.01)
Investment performance:
Better/(worse) than expected alternative investment returns consolidated 5,6
-
(197)
(156)
(0.18)
453
358
0.41
Better/(worse) than expected fair value changes on fixed maturity
securities - other accounted under fair value option (FVO)5
305
241
0.28
4
3
0.00
AIG
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 7 of the 2Q21 Financial Supplement.
3) 2Q21 includes $118M of CATS, pre-tax in General Insurance and $2M of CATS, pre-tax in Other Operations related to Blackboard.
4) 2Q21 includes $51M of favorable PYD, pre-tax in General Insurance and $65M of unfavorable PYD, pre-tax in Other Operations primarily related to Blackboard.
5) The annualized expected rate of return for both 2Q20 and 2Q21 is 6% for alternative investments and 4% for FVO fixed maturity securities, respectively, pre-tax.
6) Presented on a consolidated AIG basis, which consists of GI, L&R and Other Operations, including consolidation and eliminations.
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