AIG 200 Strategic Update slide image

AIG 200 Strategic Update

Financial flexibility remains robust with strong balance sheet; Total debt & preferred stock leverage of 28.4%; $1.5B senior notes redeemed in February 2021 Capital Structure ($B) Risk Based Capital (RBC) Ratios4 $93.2 $1.6 $88.0 Hybrids 1 $1.6 Year Life and Retirement Companies General Insurance Companies 1,2 $24.4 ■Financial Debt $22.8 $0.8 ■NCI $8.9 $0.9 $4.2 $0.5 $7.9 $7.5 $0.5 AOCI ³ 2020 433% (CAL) 460% (ACL) ■Preferred Equity Total Equity: $67.2 Total Equity: $63.6 ■Tax Attribute DTA $49.1 $50.4 ■ Adjusted S/E 1Q21 Estimated 5 435% -445% (CAL) 465% -475% (ACL) December 31, 2020 March 31, 2021 Dec. 31, Mar. 31, Ratios: Hybrids / Total capital Pending finalization of Statutory financials Credit Ratings6 2020 2021 1.7% 1.8% S&P Moody's Fitch A.M. Best Financial debt / Total capital (incl. AOCI) Total Hybrids & Financial debt / Total capital Preferred stock / Total capital (incl. AOCI) Total debt and preferred stock / Total capital (incl. AOCI) 26.2% 26.0% 27.9% 27.8% AIG Senior Debt BBB+ Baa1 BBB+ NR 0.5% 0.6% 28.4% 28.4% General Insurance FSR A+ A2 A Total debt and preferred stock / 31.4% 29.7% Total capital (ex. AOCI)³* Life and Retirement A+ A2 A+ A FSR AIG * 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. 1) Hybrids and financial debt values include changes in foreign exchange. 2) Includes AIG notes, bonds, loans and mortgages payable, AIG Life Holdings, Inc. (AIGLH) notes and bonds payable and junior subordinated debt, and Validus notes and bonds payable. 3) December 31, 2020, AOCI is computed as GAAP AOCI of $13.5B excluding $4.7B of cumulative unrealized gains and losses related to Fortitude Re funds withheld assets; March 31, 2021 AOCI is computed as GAAP AOCI of $6.5B excluding $2.2B of cumulative unrealized gains and losses related to Fortitude Re funds withheld assets. 4) The inclusion of RBC measures is intended solely for the information of investors and is not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities. ACL is defined as Authorized Control Level and CAL is defined as Company Action Level. RBC ratio for Domestic Life and Retirement companies excludes holding company, AGC Life Insurance Company. 5) Preliminary range subject to change with completion of statutory closing process. 6) As of the date of this presentation: S&P Outlook: CreditWatch Negative, with the exception of the Life Insurance Companies, which is CreditWatch Developing; Moody's Outlook: Stable, with the exception of AIG Sr. Debt, On review for downgrade; Fitch Outlook: Stable, Non-Life and Life Companies; Rating Watch Negative, AIG Sr. Debt; A.M. Best Outlook: Stable. For General Insurance companies FSR and Life and Retirement companies FSR, 14 ratings only reflect those of the core insurance companies.
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