AIG Earnings and Investment Portfolio Report
General Insurance: 4.0 pt improvement in North America Commercial Lines AYCR,
as adjusted; Personal Insurance impacted by Travel and Syndicate 2019
($M)
Net premiums written
Key Takeaways:
■ North America (NA) Commercial Lines NPW grew 10% from the prior year quarter
reflecting strong rate momentum, improved retention and higher writings in AIG Re. NA
Personal Insurance NPW decreased as a result of cessions pursuant to a series of quota
share reinsurance agreements placed in 2Q20 to form Syndicate 2019 and the adverse
impact of COVID-19 on the Travel business
■ NA Commercial Lines AYCR, as adjusted, improved 4.0 pts reflecting improved business
mix and rate increases, as well as expense discipline
4Q19
$2,639
4Q20
$2,361
Commercial Lines
1,815
1,992
Personal Insurance
824
369
Net premiums earned
$2,948
$2,603
Commercial Lines
Personal Insurance
2,141
807
2,289
314
($96)
($389)
Commercial Lines
(188)
(285)
Personal Insurance
92
(104)
■ Unfavorable PYD of $51M with $26M in Commercial Lines and $25M in Personal
Insurance; PYD includes $52M of favorable amortization from the ADC
Note: Impact of CATS, pre-tax
($313)
($477)
Underwriting loss
■ NA Personal Insurance AYCR, as adjusted, increased 10.4 pts due to impact on the loss
ratio from the change in business mix driven by a series of quota share reinsurance
agreements as described above and the adverse impact of COVID-19 on Travel. The GOE
ratio was also impacted negatively by the reduction in net premiums earned, offset slightly
by a lower acquisition ratio
■ CATS of $477M; $371M related to non-COVID-19 CATS and $106M related to COVID-19
CATS
North America Combined Ratios¹
Total
Commercial Lines
Personal Insurance
103.2%
114.9%
108.8%
112.4%
133.2%
88.6%
10.4%
18.0%
8.7%
22.6%
17.4%
14.8%
(2.6%)
2.2%
3.2%
8.0%
1.4%
(17.8%)
96.1%
94.7%
97.6%
Change
102.6%
AYCR, as
93.6%
92.2%
AYCR, as
primarily
10.1%
adjusted,
10.4%
10.6%
adjusted,
20.1%
9.1%
8.9%
driven by the
19.1%
13.5%
improved
15.6%
improved
14.0%
formation of
1.4 pts
4.0 pts
34.0%
27.1%
Syndicate
AYLR, as
66.9%
68.7%
73.5%
70.5%
2019 and
lower Travel
adjusted,
49.3%
premiums due
55.4%
improved
3.0 pts
to COVID-19
4Q20
CYCR CAT Ratio
4Q19
4Q19
PYD Ratio AYCR, As adjusted
GOE Ratio Acquisition Ratio AYLR, As adjusted
AIG 1) 4Q19 CYCR includes adjustments for ceded premium under reinsurance contracts and other of (0.7) pts, (0.7) pts, and (0.6) pts in Total North America, North America
Commercial Lines, and North America Personal Insurance, respectively.
4Q20
4Q19
4Q20
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