AIG Earnings and Investment Portfolio Report
General Insurance: Strong 2.8 pt improvement in North America Commercial AYCR,
as adjusted; Personal Insurance impacted by Travel and Syndicate 2019
($M)
Net premiums written
FY'19
$11,490
FY'20
$9,784
Commercial Lines
8,224
Personal Insurance
3,266
8,635
1,149
Net premiums earned
$12,136
$10,302
Commercial Lines
8,877
8,516
Personal Insurance
3,259
($365)
1,786
($1,301)
(364)
(1)
Note: Impact of CATS, pre-tax
($827)
(861)
(440)
($1,737)
Underwriting loss
Commercial Lines
Personal Insurance
Key Takeaways:
■ NA Commercial Lines NPW grew 5% over the prior year reflecting strong rate momentum,
improved retention and higher writings in AIG Re. NA Personal Insurance NPW decreased as
a result of the impact from COVID-19 on the Travel business, and cessions pursuant to a
series of quota share reinsurance agreements placed in the 2Q20 related to Syndicate 2019
■ NA Commercial Lines AYCR, as adjusted, improved 2.8 pts due to enhanced risk selection
along with higher rate change, as well as a lower expense ratio due to changes in the
business mix and expense discipline
■ NA Personal Insurance AYCR, as adjusted, increased 8.8 pts due to the impact on the loss
ratio of COVID-19 on Travel and the change in business mix driven by a series of quota share
reinsurance agreements as described above. The GOE ratio was also impacted by the
reduction in net premiums earned
■ CATS of $1.7B; $1.0B related to non-COVID-19 CATS and $0.7B related to COVID-19 CATS
■ Favorable PYD of $157M with $239M favorable PYD in Commercial Lines and $82M in
unfavorable PYD in Personal Insurance; PYD reflects $211M of favorable amortization from
the ADC
North America Combined Ratios¹
Total
Commercial Lines
Personal Insurance
112.6%
103.1%
104.1%
110.0%
124.7%
100.0%
6.8%
16.7%
6.3%
16.7%
16.9%
8.1%
(1.0%)
(1.2%)
(0.3%)
4.0%
(2.2%)
(2.8%)
97.5%
97.0%
98.3%
AYCR, as
95.5%
95.0%
Change
103.8%
AYCR, as
primarily
10.2%
adjusted,
11.3%
10.5%
15.7%
adjusted,
10.3%
9.2%
driven by the
19.8%
improved
16.7%
14.6%
improved
14.3%
formation of
28.1%
2.8 pts
33.8%
0.5 pts
Syndicate
AYLR, as
67.5%
69.0%
73.2%
adjusted,
70.9%
52.0%
2019 and
lower Travel
premiums due
60.0%
improved
to COVID-19
2.3 pts
FY'19
FY'20
CYCR CAT Ratio
FY'19
FY'20
FY'19
FY'20
PYD Ratio AYCR, As adjusted
GOE Ratio Acquisition Ratio AYLR, As adjusted
AIG 1) FY'19 CYCR includes adjustments for ceded premium under reinsurance contracts and other of (0.2) pts, (0.2) pts, and (0.3) pts in Total North America, North America
Commercial Lines, and North America Personal Insurance, respectively.
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