General Insurance Financial Overview slide image

General Insurance Financial Overview

Adjusted ROE improvement and tangible book value growth reflect strong operating performance in General Insurance and solid Life and Retirement results General Insurance 4Q21 and FY'21 APTI of $1.5B and $4.4B reflect strong underwriting results; the combined ratio was 92.4 in 4Q21 and 95.8 in FY'21, a 10.4 point and 8.5 point improvement, respectively, from prior year periods; the AYCR, as adjusted was 89.8 and 91.0 in 4Q21 and FY'21, reflecting continued improvement by Commercial Lines in the quality of the portfolio and Commercial Insurance underwriting business mix Life and Retirement 4Q21 and FY'21 APTI of $969M and $3.9B, compared to $1,027M and $3.5B in prior year periods; Life Insurance 4Q21 adjusted pre-tax loss (APTL)* of $8M and FY'21 APTI of $106M, down $38M and $36M, respectively, from prior year periods primarily due to unfavorable mortality Other Operations 4Q21 and FY'21 APTL was $648M and $2.4B, including $470M and $932M of reductions from consolidation and eliminations; the increase in consolidation and eliminations APTL reflects the elimination of the insurance companies' NII on their investment in consolidated investment entities that is accounted for as realized gains or losses in consolidation 1) Other Operations is primarily comprised of corporate, our institutional asset management business and consolidation and eliminations. * Refers to financial measure not calculated in accordance with generally accepted accounting principles (Non-GAAP); definitions and abbreviations of Non-GAAP measures and reconciliations to their closest GAAP measures can be found in this presentation under the heading Glossary of Non-GAAP Financial Measures and Non-GAAP Reconciliations. AIG Copyright ® 2022 by American International Group, Inc. All rights reserved. No part of this document may be reproduced, republished or reposted without the permission of AIG. ($M, except per common share amounts) Adjusted Pre-tax Income (Loss): General Insurance Life and Retirement Other Operations¹ Total adjusted pre-tax income AATI attributable to AIG common shareholders AATI per diluted share attributable to AIG common shareholders Net income (loss) attributable to AIG common shareholders 4Q20 4Q21 Variances FY'20 FY'21 Variances $809 $1,509 $700 1,027 969 (58) (720) (648) 72 $1,116 $1,830 $714 $827 $1,339 $512 $0.94 $1.58 $0.64 $1,901 $4,359 $2,458 3,531 3,911 380 (2,429) (2,350) 79 $3,003 $5,920 $2,917 $2,201 $4,430 $2,229 $2.52 $5.12 $2.60 $57.01 $68.83 ($60) $3,739 $3,799 $76.46 $79.97 $3.51 $11.82 ($5,973) $9,359 $15,332 $76.46 $79.97 $3.51 $57.01 $68.83 $11.82 Adjusted tangible book value per common share $51.18 $62.82 $11.64 $51.18 $62.82 $11.64 Net income (loss) attributable to noncontrolling interests Total adjusted return on common equity General Insurance Underwriting Ratios: Loss ratio $37 $360 6.7% 9.9% $323 3.2% $115 $535 4.4% 8.6% $420 4.2% 70.2% 61.8% 8.4% 71.0% 64.2% 6.8% Book value per common share Adjusted book value per common share Less: impact on loss ratio Prior year development (PYD) Accident year loss ratio (AYLR), as adjusted Expense ratio Catastrophe losses and reinstatement premiums (0.9%) 0.3% 60.3% 59.2% (9.0%) (2.9%) 6.1% 1.2% 1.1% (10.3%) (5.4%) 4.9% 0.1% 0.6% 0.5% 32.6% 30.6% 102.8% 92.4% 92.9% 89.8% 2.0% 10.4% 3.1% 60.8% 59.4% 33.3% 31.6% 1.4% 1.7% 104.3% 95.8% 94.1% 91.0% 8.5% 3.1% Combined ratio Accident year combined ratio, as adjusted 4
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