General Insurance Financial Overview slide image

General Insurance Financial Overview

General Insurance: Strong International Commercial Lines NPW growth of 15% and a 2.5 point improvement in Commercial Lines AYCR, as adjusted ($M) Net premiums written International Commercial Lines NPW grew 15% (16% on a constant dollar basis) compared to 4Q20, reflecting strong incremental rate improvement, higher renewal retentions and strong new business production International Personal Insurance NPW decreased 9% (5% on a constant dollar basis) compared to 4Q20, reflecting underwriting actions taken to improve the portfolio mix and to maintain rate adequacy, partially offset by growth in Personal Accident and Health, and Travel due to a rebound in travel activity International Commercial Lines AYCR, as adjusted, improved 2.5 points primarily from expense discipline, enhanced risk selection, and changes in business mix 4Q20 4Q21 International Net Premiums Written ($M) $3,204 $3,319 Commercial Lines 1,662 1,915 Personal Insurance $3,204 Total NPW 1,542 1,404 Net premiums earned +4% +6% (Ex. FX) $3,319 $3,390 $3,544 Commercial Lines $1,404 $1,542 1,771 2,004 Personal Insurance 1,619 1,540 Underwriting income $218 $347 Commercial Lines 138 239 $1,662 Personal Insurance 80 108 Commercial Lines +15% +16% (Ex. FX) $1,915 Note: Impact of CATS, pre-tax ($68) ($23) 4Q20 4Q21 ■Commercial Lines Personal Insurance Total Calendar Year Combined Ratio 93.6% 90.1% International Combined Ratios Commercial Lines Calendar Year Combined Ratio 92.1% 88.1% Personal Insurance Calendar Year Combined Ratio 95.0% 93.0% AYCR, as adjusted improved -1.8 points -2.5 points AYCR, as adjusted improved 94.1% 94.1% International Personal Insurance AYCR, as adjusted, was flat; benefiting from lower operating expenses, offset by higher acquisition costs 91.7% 89.9% 89.2% 86.7% 15.4% 14.5% 14.7% 13.3% 13.9% 12.5% CATS of $23M primarily related to multi-state tornadoes; vs. $68M in 4Q20 23.0% 22.3% 19.4% 18.0% 26.9% 27.9% Favorable PYD of $15M with $16M favorable PYD in Personal Insurance offset by $1M unfavorable PYD in Commercial Lines 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. 54.0% 54.3% 55.9% 56.2% 51.8% 51.7% 4Q20 4Q21 4Q20 4Q21 4Q20 4Q21 ■AYLR, As Adj Acq. Ratio GOE Ratio 13
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