Investor Presentaiton
Legacy Portfolio
($ in millions)
1Q19
1Q20
General Insurance run-off lines
$15
$36
Life and Retirement run-off lines
87
(133)
Legacy Investments
10
(271)
Adjusted pre-tax income (loss)
$112
($368)
AIG
Key Takeaways
Legacy APTL driven primarily by investment losses, principally mark-to-market, on FVO investment
portfolios in 1Q20 compared to gains in 1Q19
■ Legacy Life and Retirement APTL primarily driven by alternative investment losses and lower returns on
FVO securities
Fortitude Re
■ Included in the Legacy results is Fortitude Reinsurance Company Ltd (Fortitude Re). AIG agreed
November 2019 to sell a controlling financial interest in Fortitude Group Holdings, LLC, the holding
company for Fortitude Re. The sale is expected to close in mid-2020, subject to required regulatory
approvals and other customary closing conditions
Upon closing of the Fortitude Holdings sale, AIG will recognize a loss on deconsolidation relating to the
portion of the unamortized balance of prepaid reinsurance assets that are not recoverable, if any, when
AIG is no longer a controlling shareholder in Fortitude Holdings. As of March 31, 2020, the loss on the
prepaid insurance assets and related DAC was $2.6B after-tax and would be incremental to any gain or
loss recognized on the Fortitude Holdings sale. Due to the embedded derivative, the incremental gain or
loss AIG will recognize on the Fortitude Holdings sale would be impacted, perhaps significantly, by
market conditions existing at the time the sale closes
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