AIG General Insurance and Life & Retirement Earnings
General Insurance: Strong International Commercial Lines NPW growth of +17%
along with 1.9 pts of total AYCR, as adjusted improvement
($M)
2Q20
2Q21
Net premiums written
Commercial Lines
$3,396
1,769
$3,704
2,062
Personal Insurance
1,627
1,642
Net premiums earned
$3,263
$3,530
Commercial Lines
1,685
1,945
Personal Insurance
1,578
1,585
Underwriting income
$96
$294
Commercial Lines
7
218
Personal Insurance
89
76
Note: Impact of CATS, pre-tax
($177)
($48)
Key Takeaways:
■ International Commercial Lines NPW grew 17% (10% on a constant dollar basis) from 2Q20
reflecting continued rate increases, improved retention and strong growth in new business
across most lines
■ International Personal Insurance NPW grew 1% (down 2% on a constant dollar basis)
compared to 2Q20, due to the impact of COVID-19, primarily in Accident & Health and
Personal Auto, as well as Personal Property remediation, partially offset by growth in Warranty
business
■ International Commercial Lines AYCR, as adjusted, improved 3.7 pts due to enhanced risk
selection along with rate increases, particularly Global Specialty and Property, supported by
expense discipline
■ International Personal Insurance AYCR, as adjusted, deteriorated 0.5 pts due to higher
Personal Lines Property losses, mitigated by expense discipline
■ CATS of $48M primarily related to winter storms improved vs. $177M in 2Q20
■ Unfavorable PYD of $7M with $13M unfavorable PYD in Commercial Lines offset by $6M
favorable PYD in Personal Insurance
International Combined Ratios
Commercial Lines
Total
Personal Insurance
97.1%
91.8%
99.5%
88.7%
94.3%
95.2%
5.7%
1.5%
11.4%
1.4%
(0.4%)
1.6%
(0.7%)
(2.5%)
1.2%
(0.4%)
0.1%
0.4%
92.1%
90.6%
93.5%
94.0%
90.2%
86.9%
AYCR, as
AYCR, as
14.4%
adjusted,
13.3%
14.1%
14.6%
14.4%
adjusted,
12.3%
improved
23.0%
21.8%
19.3%
improved
18.6%
26.8%
25.6%
1.9 pts
3.7 pts
AYLR, as
54.7%
55.1%
57.2%
adjusted,
56.0%
52.1%
54.0%
improved
1.2 pts
2Q20
2Q21
2Q20
2Q21
2Q20
2Q21
CYCR
CAT Ratio PYD Ratio AYCR, As adjusted
GOE Ratio
Acquisition Ratio
AYLR, As adjusted
AIG
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