AIG Earnings and Investment Portfolio Report
4Q19
4Q20
Net premiums written
$5,830
$5,565
Net premiums earned
$6,372
$5,993
General Insurance: 2.9 pts better AYCR, as adjusted; 4.4 pt improvement in Global
Commercial Lines due to improved business mix as a result of underwriting actions
Net Premiums Written (NPW) ($M)
($M)
Global Personal Insurance
-22.3%
Global Commercial Lines
+8.5%
$3,654
$3,369
$2,461
Loss and loss adjustment expense
4,180
4,210
Acquisition expenses
1,362
1,186
$1,662
Change
$1,911
$1,554
primarily
driven by the
General operating expenses
818
768
Underwriting income (loss)
$12
($171)
$1,815
$1,992
Net investment income
$766
$980
$1,637 formation of
Syndicate
2019 and
lower Travel
premiums
due to
COVID-19
$1,542
$824
Adjusted pre-tax income
$778
$809
4Q19
4Q20
Note: Impact of CATS¹, pre-tax
($411)
($545)
■North America
4Q19
International
$369
4Q20
Calendar Year Combined Ratios (CYCR)²
Accident Year Combined Ratios (excl. CATS) walk
AYCR, as adjusted,
+3.0 pts
99.8%
102.8%
improved 2.9 pts
95.8%
92.9%
6.5%
12.8%
with 2.5 pt
9.0%
0.9%
increase in
CATS
12.8%
1.3%
1.6%
34.2%
32.6%
21.4%
19.8%
61.6%
60.3%
61.6%
60.3%
4Q19
AYLR
U/W Actions/Mix
■AYLR, As Adj.
Expense Ratio
4Q20
Expense Ratio
-2.2%
■AYLR, As Adj.
4Q19
4Q20
■Acq. Ratio
GOE Ratio ■PYD Ratio ■CAT Ratio
1) 4Q20 includes non-COVID-19 CATS of $367M and COVID-19 CATS of $178M, pre-tax.
AIG 2) 4Q19 CYCR includes adjustments for ceded premium under reinsurance contracts and other of (0.3) pts.
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