AIG Earnings and Investment Portfolio Report
FY'20 APTI of $3.0B reflects higher CATS, including COVID-19, and lower
NII than the prior year; General Insurance AYCR, as adjusted, improved 1.9.
pts; Life and Retirement APTI nearly flat
($M, except per common share amounts)
Adjusted pre-tax income (loss):
General Insurance
Life and Retirement
Other Operations¹
Total adjusted pre-tax income
FY'19 FY'20 Variances
Key Takeaways
$3,533 $1,901 ($1,632)
3,553 3,531
(22)
General Insurance APTI decreased by $1.6B from FY'19
primarily due to:
(1,616) (2,429)
(813)
AATI attributable to AIG common shareholders
AATI per diluted share attributable to
AIG common shareholders
Net income (loss) attributable to
AIG common shareholders
Consolidated adjusted ROCE
$5,470 $3,003 ($2,467)
$4,078 $2,201 ($1,877)
$4.58
$2.52 ($2.06)
$3,326 ($5,973) ($9,299)
8.3% 4.4%
General Insurance underwriting ratios:
Loss ratio
65.2% 71.0%
(3.9) pts
B/(W)
(5.8) pts
Less: impact on loss ratio
Catastrophe losses and reinstatement premiums
Prior year development
(4.8%) (10.3%)
1.1% 0.1%
Adjustments for ceded premium under reinsurance
contracts and other
0.1%
0.0%
Accident year loss ratio, as adjusted
61.6%
Expense ratio
Accident year combined ratio, as adjusted
Calendar year combined ratio
60.8%
34.4% 33.3%
96.0% 94.1%
99.6% 104.3% (4.7) pts
(5.5) pts
(1.0) pts
(0.1) pts
0.8 pts
1.1 pts
1.9 pts
$1.2B increase in CATS including $1.1B of COVID-19
CATS,
$0.5B decrease in NII, APTI basis, and
1.0 pt decrease in favorable PYD ratio reflecting lower
favorable PYD in FY'20 compared to FY'19;
partially offset by 1.9 pt improvement in AYCR, as
adjusted
Life and Retirement APTI was nearly flat; results reflect
the impact of COVID-19 mortality, base spread
compression and lower FVO bond income, almost
entirely offset by higher private equity returns and
favorable impacts from lower interest rates and tighter
credit spreads resulting in higher call and tender income
Other Operations APTL was $2.4B, including $0.5B of
reductions from consolidation and eliminations,
compared to $1.6B, including $0.3B of reductions from
consolidation and eliminations, in the prior year quarter.
The increase in consolidation and eliminations reflects
the impact of consolidated investment entities. Before
consolidation and eliminations, the increase in the pre-tax
loss was primarily due to the sale of Fortitude in 2Q20,
lower NII associated with available for sale securities
(excluding Fortitude), and increased interest expense
related to debt issuances in 2Q20
AIG
1) Other Operations is primarily comprised of corporate, our institutional asset management business and consolidation and eliminations.
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