AIG General Insurance and Life & Retirement Earnings
General Insurance: Strong NPW growth in North America Commercial Lines and
Personal Insurance along with continued strong underwriting margin improvement
($M)
Net premiums written
2Q21
Commercial Lines
2Q20
$2,153
2,303
$3,156
2,655
Personal Insurance
(150)
501
Net premiums earned
$2,474
$2,685
Commercial Lines
2,084
2,318
Personal Insurance
390
367
Underwriting income (loss)
($439)
$169
Commercial Lines
(405)
162
Personal Insurance
(34)
7
Note: Impact of CATS, pre-tax
($497)
($70)
Key Takeaways:
■ NA Commercial Lines NPW grew 15% from 2Q20 reflecting continued rate increases,
improved retention, and higher new business volumes as well as reductions in
reinsurance cessions
■ NA Personal Insurance NPW growth reflects the combined impact of the creation of
Syndicate 2019 and cessions placed on AIG's PCG business in 2Q20 as well as growth
in Travel and Warranty business driven by a rebound in travel activity and increased
consumer spending
■ NA Commercial Lines AYCR, as adjusted, improved 6.2 pts reflecting the impact of rate
increases and improving risk selection and business mix
■ NA Personal Insurance AYCR, as adjusted, improved 4.7 pts to 100.1% compared to
2Q20 due to changes in business mix driven by changes to AIG's PCG business and
rebound in travel activity and increased consumer spending
■ CATS of $70M primarily related to windstorms and hailstorms improved vs. $497M in
2Q20
■ Favorable PYD of $58M with $39M in Commercial Lines and $19M in Personal
Insurance; PYD includes $49M of favorable amortization from the adverse development
cover (ADC)
North America Combined Ratios
AIG
Total
Commercial Lines
Personal Insurance
108.7%
117.8%
93.7%
119.4%
93.0%
98.1%
2.6%
3.0%
20.2%
2.9%
23.4%
2.9%
1.3%
(1.0%)
(1.6%)
(1.4%)
(5.0%)
(1.1%)
104.8%
100.1%
98.6%
92.4%
97.4%
91.2%
AYCR, as
12.0%
AYCR, as
16.4%
adjusted,
10.6%
11.2%
AYCR, as
adjusted,
19.9%
9.1%
16.1%
14.1%
adjusted,
improved
15.7%
15.1%
26.7%
improved
improved
4.7 pts
19.3%
6.2 pts
6.2 pts
70.5%
AYLR, as
66.1%
72.1%
AYLR, as
67.0%
61.7%
60.9%
adjusted,
adjusted,
improved
improved
4.4 pts
5.1 pts
2Q20
2Q21
2Q20
2Q21
CYCR CAT Ratio PYD Ratio AYCR, As adjusted
GOE Ratio
Acquisition Ratio
2Q20
AYLR, As adjusted
2Q21
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