Investor Presentaiton
4Q18
$2,944
2,161
783
4Q19
$2,814
1,990
824
General Insurance: North America underwriting results improving,
driven by better Commercial AYLR and lower CATS
($ in millions)
Net premiums written
Commercial Lines
Personal Insurance
Key Takeaways:
Net premiums earned
$3,428
$3,140
Commercial Lines
2,594
2,333
Personal Insurance
834
Underwriting income (loss)
($871)
($19)
Commercial Lines
(541)
(111)
Personal Insurance
(330)
92
Net investment income
$296
$641
807
NPW decreased 4% due to underwriting actions and changes in
reinsurance programs in 2019
AYLR, as adjusted, decreased 0.2 pts due to beneficial impact of
underwriting and reinsurance actions, partially offset by higher crop
losses
GOE ratio increased slightly as the decline in GOE was less than
the decline in net premiums earned
Acquisition ratio decreased 2.0 pts driven by changes in business
mix
Adjusted pre-tax income (loss)
($575)
$622
Underwriting Ratios:
4Q18
4Q19
B/(W)
North America Combined Ratio
Commercial Lines
AY combined ratio, as adjusted
99.0%
95.4%
3.6 pts
125.3%¹
100.6%1
Catastrophe losses and
19.6%
CYCR, as
adjusted,
9.8%
9.8%
8.0%
1.8 pts
reinstatement premiums
improved 24.7 pts
10.0%
(3.1%)
Prior year development
13.3%
2.1%
11.2 pts
96.6%
94.6%
Combined ratio¹
120.9%
104.8%
16.1 pts
AYCR, as
10.2%
adjusted,
10.4%
Personal Insurance
20.5%
improved 2.0 pts
18.5%
AY combined ratio, as adjusted
89.8%
92.2%
(2.4) pts
Catastrophe losses and
49.8%
14.8%
35.0 pts
reinstatement premiums
65.9%
AYLR, as adjusted,
65.7%
Prior year development
Combined ratio¹
(17.8%)
17.8 pts
improved 0.2 pts
despite impact of Crop
139.6%
88.6%
51.0 pts
4Q18
4Q19
Calendar Year Combined Ratio
AYCR, As adjusted
CAT Ratio
PYD Ratio
GOE Ratio
Acquisition Ratio
AYLR, As adjusted
AIG
1) Calendar year combined ratio includes adjustments for ceded premium under
reinsurance contracts and other in 4Q18 and 4Q19.
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