Investor Presentaiton
General Insurance: Increase to International CYCR; International AY, as adjusted,
improved due to premium rate increases, underwriting actions and portfolio
optimization
($M)
2Q19
2Q20
Key Takeaways:
Net premiums written
$3,274
$3,202
Commercial Lines
1,516
1,575
Personal Insurance
1,758
1,627
Net premiums earned
$3,392
$3,084
Commercial Lines
1,574
1,506
Personal Insurance
1,818
1,578
Underwriting income
$152
$76
Commercial Lines
51
(13)
Personal Insurance
101
89
Net investment income
Adjusted pre-tax income
Exclude: Impact of CATS
Adjusted pre-tax income (ex. CATs)
$110
$94
$262
$170
($4)
($155)
International Commercial Lines and Personal Insurance Underwriting Results
■ Net premiums written decreased 2% (1% on a constant dollar basis); Commercial Lines
increased by 7% on a constant dollar basis driven by strong rate improvement and higher
retention across most Commercial Lines. This was offset by the decline in net premiums
written in Personal Insurance, in part from the impact of COVID-19 on Travel and other lines
of business
■ Int'l Commercial Lines CYCR increased 4.0 pts; on an AY, as adjusted, basis improved 5.0
pts driven by premium rate increases, benefits from underwriting actions, portfolio
optimization and ongoing expense discipline
■ Int'l Personal Insurance CYCR decreased 0.2 pts; on an AY, as adjusted, basis improved
0.9 pts reflecting lower attritional losses in Japan and Asia Pacific Personal Auto
■
Expense ratio improved 0.5 pts reflecting ongoing expense discipline
International APTI
■ CATS of $155M, includes an estimated $94M related to COVID-19 and $45M related to civil
unrest
$266
$325
■ NII decreased reflecting lower income on private equity holdings
Total
International Combined Ratios
Commercial Lines
Personal Insurance
97.6%
95.5%
96.8%
100.8%
94.5%
94.3%
0.1%
5.4%
0.3%
11.3%
(0.4%)
(0.1%)
(0.6%)
(0.4%)
(2.4%)
0.1%
1.2%
95.5%
96.9%
92.8%
91.9%
94.4%
93.5%
AYCR, as
AYCR, as
AYCR, as
14.5%
14.2%
adjusted,
14.4%
adjusted,
14.1%
14.9%
adjusted,
14.6%
improved
improved
improved
21.1%
24.1%
2.7 pts
23.7%
5.0 pts
20.4%
26.7%
0.9 pts
26.8%
AYLR, as
AYLR, as
56.9%
61.6%
adjusted,
adjusted,
54.7%
57.4%
improved
improved
2.2 pts
4.2 pts
2Q19
2Q20
2Q19
Calendar Year Combined Ratio
CAT Ratio PYD Ratio AYCR, As adjusted
GOE Ratio Acquisition Ratio
2Q20
AIG Note: Calendar year combined ratios refers to a GAAP measure; the corresponding accident year, as adjusted, ratios refers to financial measure not calculated in accordance
with GAAP; definitions and abbreviations of Non-GAAP measures and reconciliations to their closest GAAP measures can be found in this presentation under the heading
Glossary of Non-GAAP Financial Measures and Non-GAAP Reconciliations.
2Q20
AYLR, as
52.8%
adjusted,
52.1%
improved
0.7 pts
2Q19
AYLR, As adjusted
14View entire presentation