AIG General Insurance and Life & Retirement Earnings
Financial flexibility remains strong with reduced debt and $7.2B of Parent liquidity at June 30,
2021; Total debt & preferred stock leverage of 27.0%
Capital Structure ($B)
Risk Based Capital (RBC) Ratios4
$93.2
$1.6
$91.1
$1.6
Hybrids 1
Year
Life and Retirement
Companies
General Insurance
Companies
1,2
$24.4
$22.6
Financial Debt
$0.8
$0.8
■NCI
$8.9
$6.9
$0.5
$7.4
$0.5
AOCI ³
$7.9
2020
433% (CAL)
460% (ACL)
■Preferred Equity
Total Equity:
$67.2
Total Equity:
$66.9
■Tax Attribute DTA
$49.1
$51.4
■ Adjusted S/E
2Q21
Estimated 5
440%-450% (CAL)
460%-470% (ACL)
Pending finalization of Statutory financials
December 31, 2020
June 30, 2021
Dec. 31, June 30,
Ratios:
Hybrids / Total capital
Credit Ratings6
2020
2021
1.7%
1.7%
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%
24.8%
27.9%
26.5%
AIG Senior Debt
BBB+
Baa2
BBB+
NR
0.5%
0.5%
28.4%
27.0%
General
Insurance FSR
A+
A2
A
A
Total debt and preferred stock /
Life and
31.4%
29.3%
A+
A2
A+
A
Total capital (ex. AOCI)3*
Retirement - 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; June 30, 2021 AOCI is computed as GAAP AOCI of
$10.2B excluding $3.3B 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. Life and Retirement and General Insurance fleet RBC ratio expected to be negatively impacted by approximately 10 and 2 RBC points by year
end, respectively due to the NAIC proposal to change bond and real estate RBC capital factors. This impact is not reflected in the estimate range shown above.
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 Life Insurance
Companies, which is Negative; 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, ratings only reflect those of the core insurance companies.
14View entire presentation