Investor Presentaiton
4Q19 APTI of $1.2B versus APTL in 4Q18 driven by improved
underwriting results and higher net investment income
($ in millions, except per common share amounts) 4Q18 4Q19 Variances
Adjusted Pre-tax Income (Loss):
General Insurance
Life and Retirement
Other Operations¹
Total Core
Legacy Portfolio
Total adjusted pre-tax income (loss)
AATI(L)* attributable to AIG common shareholders
AATI(L)* per diluted share attributable to AIG
common shareholders
($722)
623
$778
$1,500
839
216
(420)
(586)
(166)
(519) 1,031
1,550
(150) 177
327
($669) $1,208
$1,877
($559) $919
($0.63) $1.03
$1,478
$1.66
Net income (loss) attributable to AIG common
shareholders
($622) $922
Consolidated adjusted ROCE
(4.6%) 7.3%
$1,544
11.9 pts
General Insurance Underwriting Ratios:
Loss ratio
80.1% 65.6%
B/(W)
14.5 pts
Less: impact on loss ratio
Catastrophe losses and reinstatement premiums
(11.3%) (6.5%)
Prior year development
(5.3%) 2.2%
Adjustments for ceded premium under reinsurance
contracts and other
0.4% 0.3%
Accident year loss ratio, as adjusted
63.9% 61.6%
Expense ratio
Combined ratio
Accident year combined ratio, as adjusted
34.9% 34.2%
115.0% 99.8%
98.8% 95.8%
4.8 pts
7.5 pts
(0.1) pts
2.3 pts
0.7 pts
15.2 pts
3.0 pts
Key Takeaways
■ General Insurance APTI increased significantly
primarily due to:
Underwriting income of $12M including:
•
lower CATS of $411M,
net favorable PYD of $153M, and
improved AY results of $284M
Increased NII reflecting alternative investment
income versus a loss in 4Q18
■ Life and Retirement APTI increased primarily due
to favorable impacts from equity market returns,
favorable impacts from lower interest rates
resulting in higher income on fair value option
bonds and gains on calls, and higher assets
driving higher base portfolio income; partially
offset by spread compression due to lower
reinvestment yields and slightly higher general
operating expenses
■ Other Operations APTL before consolidation and
eliminations, increased slightly due to an increase
in interest expense from consolidated investment
entities of $44 million
Legacy Portfolio APTI increased primarily due to
higher NII and a $105M loss recognition expense
on certain Accident and Health cancer and
disability blocks in 4Q18
Adjusted effective tax rate of 19.3%
* 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
AIG Non-GAAP Reconciliations.
1) Includes corporate GOE not allocated to segments, certain compensation expenses not distributed to reporting segments, interest and other expenses as well as
consolidation, eliminations and other adjustments.
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