Investor Presentaiton
Key Messages
1Q20
Financial Results
Net income of $1.7B ($1.98 per diluted share) benefited from $3.5 billion of pre-tax net realized capital gains largely
related to mark-to-market gains from variable annuity and interest rate hedges and the impact of our non-economic
non-performance risk adjustment, per GAAP, on the fair value of our liabilities
1Q20 adjusted after-tax income* (AATI) of $99M; adjusted pre-tax income* (APTI) of $172M was driven by:
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Lower net investment income reflecting an other investment loss, principally from fair value option (FVO) fixed
maturities, and lower alternative investment income due to hedge funds
$272M of pre-tax catastrophe losses (CATS) in General Insurance for estimated COVID-19 losses related to
Travel, Contingency, Commercial Property, Trade Credit, Workers' Compensation and Validus Re
Adjusted tangible book value per common share of $54.58, a $5.34 per share increase from the prior year
General Insurance
Life & Retirement
AIG
$419M of CATS included $272M of estimated COVID-19 losses; the remainder of the CATS were primarily weather-
related
AYCR, as adjusted*, was 95.5%, comprised of a 60.8% AYLR, as adjusted*, and an expense ratio of 34.7%,
reflecting continued expense discipline
AYLR improved 1.0 pt from the prior year reflecting underwriting and reinsurance actions taken to improve
business mix, rate adequacy and loss performance
Strong rate momentum from 2019 continuing into the first quarter
1Q20 adjusted pre-tax income of $574M and adjusted return on attributed common equity of 8.4% was primarily
due to declines in equity markets and widening spreads in credit markets
Variable Annuity product risk management features and hedging program performed as expected
*
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.
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