Investor Presentaiton
1Q19
Net premiums written
$3,455
1Q20
$3,151
1,780
1,577
General Insurance: International results reflect the impact of COVID-19 and lower
NII; AY underwriting improvement in Personal Insurance
($ in millions)
Commercial Lines
Key Takeaways:
Personal Insurance
1,675
1,574
Net premiums earned
$3,560
$3,160
Commercial Lines
1,684
1,513
Personal Insurance
1,876
1,647
Underwriting income (loss)
$190
($1)
Commercial Lines
68
(41)
Personal Insurance
122
40
Net investment income
$144
$93
Adjusted pre-tax income
$334
Exclude: Impact of COVID-19
$92
($149)
Adjusted pre-tax income (ex. COVID-19)
$334
$241
Underwriting Ratios:
1Q19
1Q20
B/(W)
■ Net premiums written decreased 9% on a reported basis and 8% on a
constant dollar basis, driven by lower production primarily due to
underwriting actions taken through 2019, as well as lower premiums
from run-off business, partially offset by premium rate increases
▪AYLR, as adjusted, improved 0.9 pts reflected premium rate
increases, benefits from underwriting actions and better risk selection
Expense ratio increased 1.1 pts as the decline in expenses was less
than the decline in net premiums earned
■ Catastrophe losses of $214M includes $149M related to COVID-19
■ NII decreased reflecting lower returns on fixed income securities
International Combined Ratios
Commercial Lines
AY combined ratio, as adjusted
92.6%
93.8%
(1.2) pts
94.6%
100.0%
Catastrophe losses and
0.5%
6.7%
1.0%
11.3%
(10.3) pts
reinstatement premiums
(0.4%)
(1.4%)
Prior year development
2.4%
(2.5%)
4.9 pts
94.5%
94.7%
Combined ratio
96.0%
102.6%
(6.6) pts
13.4%
14.2%
Personal Insurance
23.8%
24.1%
AY combined ratio, as adjusted
96.3%
95.5%
0.8 pts
Catastrophe losses and
0.0%
2.7%
(2.7) pts
reinstatement premiums
57.3%
Prior year development
Combined ratio
(2.8%)
93.5%
(0.6%)
(2.2) pts
AYLR, as adjusted,
improved 0.9 pts
56.4%
97.6%
(4.1) pts
AIG
1Q19
☐ AYCR, As adjusted
Calendar Year Combined Ratio
GOE Ratio
CAT Ratio
1Q20
PYD Ratio
Acquisition Ratio
AYLR, As adjusted
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