AIG 200 Strategic Update
APTI of $1.3B reflects higher NII, APTI basis, continued improvement in
Commercial Lines AYCR, as adjusted, and strong Life and Retirement results
($M, except per common share amounts)
Adjusted Pre-tax Income (Loss):
General Insurance
Life and Retirement
1Q20
1Q21 Variances
◉
$501 $845
$344
601
941
340
Other Operations¹
(922)
(530)
392
Total adjusted pre-tax income
$180
1,256
$1,076
AATI attributable to AIG common shareholders
$105
923
818
AATI* per diluted share attributable to AIG
common shareholders
$0.12 $1.05
$0.93
Net income attributable to AIG common
shareholders
$1,742 $3,869
$2,127
Consolidated adjusted ROCE
0.8% 7.4%
General Insurance Underwriting Ratios:
6.6 pts
B/(W)
Loss ratio
66.8% 65.6%
1.2 pts
◉
Less: impact on loss ratio
Catastrophe losses and reinstatement premiums
(6.9%) (7.3%)
Prior year development
Accident year loss ratio, as adjusted
0.9% 0.9%
60.8% 59.2%
(0.4) pts
0.0 pts
1.6 pts
Expense ratio
34.7% 33.2%
1.5 pts
Combined ratio
101.5% 98.8%
2.7 pts
Accident year combined ratio, as adjusted
95.5% 92.4%
3.1 pts
Key Takeaways
General Insurance APTI increased by $344M primarily
due to a $160M increase in underwriting income,
reflecting an improved AYCR, as adjusted, of 3.1 pts
and a $184M increase in NII, APTI basis, from higher
alternative investment income
Life and Retirement APTI increased $340M reflecting
higher NII, APTI basis, across all businesses, driven
by private equity returns, which are reported on a one
quarter lag, and call and tender income and fair value
option (FVO) bond income due to lower interest rates
and tighter credit spreads. Group Retirement and
Individual Retirement APTI benefited from lower
Variable Annuity DAC/SIA amortization, net of fee
income and changes in reserves, partially offset by
base spread compression. Life Insurance had an
adjusted pre-tax loss (APTL) of $40M reflecting
elevated mortality principally due to COVID-19
Other Operations APTL was $530M, including $176M
of reductions from consolidation and eliminations,
compared to APTL of $922M, including $87M of
reductions from consolidation and eliminations, in the
prior year quarter. The increase in consolidation and
eliminations APTL reflects the impact of consolidated
investment entities (CIE). Before consolidation and
eliminations, the decrease in APTL primarily reflects
the impact of Fortitude, which was sold and
deconsolidated in 2Q20, and had an APTL of $317M
in 1Q20
AIG
1) Other Operations is primarily comprised of corporate, our institutional asset management business and consolidation and eliminations.
4View entire presentation