AIG Earnings and Investment Portfolio Report
Life and Retirement: Balance sheet, capital generation and liquidity
remained strong in 2020
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Strong Balance Sheet Fundamentals
Post-Fortitude sale, relatively limited net exposure to legacy
blocks of business; no Long-Term Care exposure and limited
pre-financial crisis Variable Annuities guarantees
Disciplined pricing approach across a diverse set of products
~91% investment grade corporate debt investment portfolio, as
of December 31, 2020, positioned well to navigate stress
scenarios
Estimated YE20 statutory capital levels improved from YE19
and remain above the target capital range, with modest impacts
from investment downgrades and credit losses
Dividends and Tax Sharing Payments ($B)1
$4.8
$1.5
$3.3
$2.7
$2.3
$0.1
$2.5
$1.5
$0.5
$3.3
$0.8
$1.2
2018
2019
■Dividends
2017
■Tax Sharing Payments
$1.7
2020
Loan repayments
On October 26, 2020, AIG announced its intention to separate its
Life and Retirement business from AIG. No decisions have yet been
made regarding the structure of the initial disposition of up to a
19.9% interest in the Life and Retirement business. In addition, any
separation transaction will be subject to the satisfaction of various
conditions and approvals, including approval by the AIG Board of
Directors, receipt of insurance and other required regulatory
approvals, and satisfaction of any applicable requirements of the
Securities and Exchange Commission. No assurance can be given
regarding the form that a separation transaction may take or the
specific terms or timing thereof, or that a separation will in fact occur
Fleet RBC2
480%
389%
402%
Estimated
RBC range
425% -435%
2017
2018
2019
2020E
AIG
1) Includes US Life Companies. 2020 dividends reflect the impact of lower dividends from certain subsidiaries due to $615M of proceeds from the sale of the majority
interests in Fortitude Group Holdings LLC in June 2020 (Majority Interest Fortitude Sale) being retained at AIG rather than contributed to the Life and Retirement
business, and a corresponding amount being retained by the Life and Retirement business rather than dividend up to AIG. Proceeds of $0.1B contributed to certain
Life and Retirement subsidiaries as a result of the Majority Interest Fortitude Sale are excluded from the FY2020 results above.
2) FY'20 RBC ratio is a preliminary range and subject to change with completion of statutory closing process. The RBC drop in 2018 due to tax reform and NYDFS 28
additional cash flow testing requirements.View entire presentation