American International Group, Inc. New · NYSE:AIG
American International Group, Inc. New — American International Group — Investor Presentation (November 2013)
42 slides from American International Group, Inc. New's investor presentation, Nov 13, 2013
Slide 1: American International Group, Inc. Investor Presentation
Exhibit 99.1 American International Group, Inc. Investor Presentation November 13, 2013
Slide 2: Cautionary Statement Regarding Projections and Other Information About Future Events
Cautionary Statement Regarding Projections and Other Information About Future Events This document and the remarks made within this presentation may include, and officers and representatives of American International Group, Inc. (AIG) may from time to time make, projections, goals, assumptions and s
Slide 3: AIG – An Established Global Insurance Franchise
AIG – An Established Global Insurance Franchise A platform for delivering sustainable profitable growth. Core Insurance Strategies Key Accomplishments Businesses Nine months 2013 NPW growth of 6.6% in all major lines excluding FX, Reinsurance, and Grow high value lines and optimize business mix Casu
Slide 4: AIG – Building on Capital Strength
AIG – Building on Capital Strength Paid $0.10/sh. quarterly cash dividend in September 2013; $1 billion share repurchase authorization Nine months 2013 debt calls and tenders of AIG Shareholders’ Equity - Active Capital Management $3.4 billion (face amount) and approximately $98.8 bn at September 30
Slide 5: AIG Property Casualty
* * * * * * * * * * * AIG Property Casualty
Slide 6: AIG Property Casualty – A Truly Global Franchise
AIG Property Casualty – A Truly Global Franchise AIG Property Casualty is a diversified global P&C market leader with 2012 NPW of over $34 billion. #1 U.S.-based property casualty EMEA(1) insurance organization in Europe, with 2012 NPW: $6.4 bn established and growing positions in 19% of total NPW t
Slide 7: AIG Property Casualty – Financial Highlights
AIG Property Casualty – Financial Highlights Full Year Nine Months ($ in billions) 2010 2011 2012 2013 Net premiums written $31.6 $34.8 $34.4 $26.4 Net investment income 4.4 4.3 4.8 3.8 Pre-tax operating income (loss) (1) $(1.1) $1.2 $1.8 $3.7 Accident year loss ratio, as adjusted(2) 69.2 68.7 65.2
Slide 8: AIG Property Casualty – Business Overview
AIG Property Casualty – Business Overview AIG Property Casualty offers a broad product platform. Commercial Insurance Consumer Insurance Nine Months 2013 NPW – $16.0 bn Nine Months 2013 NPW – $10.4 bn Global – Unique ability to serve multinational clients Innovative – Often first to market in new pr
Slide 9: AIG Property Casualty – Strategic Focus
AIG Property Casualty – Strategic Focus Strategic levers driving shareholder value creation. Business Underwriting Claims Operational Capital Mix Excellence Service Effectiveness Management Balance growth with Globalize Global Claims Simplify and Use RAP as a key profitability and risk standards for
Slide 10: AIG Property Casualty – Strong Brands and Customer Loyalty
AIG Property Casualty – Strong Brands and Customer Loyalty AIG Property Casualty continues to be recognized for excellence. PropertyCasualty360 British Insurance Award World Travel Fair 2013 Best Overall Commercial 2013 Underwriter of the Year 2013 Best Quality Service, Travel Insurance Insurance Pr
Slide 11: AIG Property Casualty – Product Diversification
AIG Property Casualty – Product Diversification Commercial Insurance Consumer Insurance General Liability Commercial Auto Casualty Workers’ Compensation Excess Casualty Personal Accident Crisis Management Accident and Supplemental Medical Health Travel Industrial,Energy and Commercial Property Life
Slide 12: AIG Property Casualty – Growth Economies
AIG Property Casualty – Growth Economies Growth economies accounted for 12.8% of NPW for nine months 2013, up 13.4% from nine months 2012 Growth economies are those within Central Europe, Middle East, Africa, Latin America and Asia Pacific, excluding Japan #1 foreign property casualty insurance orga
Slide 13: AIG Property Casualty – Investment Composition & Ratings
AIG Property Casualty – Investment Composition & Ratings (As of September 30, 2013) Total Cash & Invested Assets - $124.9 billion (1) Bond Portfolio - $101.0 billion(1) - by Agency Credit Rating CMBS CDO/ABS Equities 2% 5% 3% BB BBB Other A 2% RMBS 13% 10% invested Loans 26% B assets 1% 2% 11% Cash
Slide 14: AIG Life and Retirement
* * * * * * * * * * * AIG Life and Retirement
Slide 15: AIG Life and Retirement – Operating from a Position of Strength
AIG Life and Retirement – Operating from a Position of Strength Long standing leading market positions Market Leader Scale advantage in key product lines Product Diversity Comprehensive portfolio of life insurance, A&H, annuity, group retirement, & Capacity for group benefits, institutional products
Slide 16: AIG Life and Retirement – Financial Highlights
AIG Life and Retirement – Financial Highlights Full Year Nine Months 2013 ($ in billions) 2010 2011 2012 Premiums and deposits (1) $19.5 $24.4 $21.0 $20.8 Net investment income 10.8 9.9 10.7 8.0 Pre-tax operating income (2) 4.1 3.3 4.2 3.7 Cash & invested assets (3) 183.8 194.2 205.3 196.3 Assets un
Slide 17: AIG Life and Retirement – Diversified Business Mix
AIG Life and Retirement – Diversified Business Mix Nine Months 2013 Nine Months 2013 Premiums and Deposits - $20.8 billion (1) Pre-tax Operating Income - $3.7 billion (2) Retail: 69% Institutional: 31% Retail: 63% Institutional: 37% Life Insurance Life Insurance and A&H Group and A&H Group 12% Retir
Slide 18: AIG Life and Retirement – Assets Under Management
AIG Life and Retirement – Assets Under Management Year-over-year growth in AUM reflects strong sales generated by robust demand for our retail products, equity market performance and continued execution of our Institutional growth strategies. Assets Under Management - $304.4 billion at September 30,
Slide 19: AIG Life and Retirement – Leading Market Positions
AIG Life and Retirement – Leading Market Positions Market Positions Excellence in Service, Marketing and Technology #3 in Total Annuity Sales Market Tools International MarCom Awards 2013 Achievement in Customer 2012 and 2013 Platinum and Gold Excellence (ACE award for 7th Awards (42 in total) #1 in
Slide 20: AIG Life and Retirement – Broad Multichannel Distribution Network
AIG Life and Retirement – Broad Multichannel Distribution Network 2012 Sales by Channel Diversified Distribution Network Affiliated: 43% Non-affiliated: 57% VALIC financial advisors AGLA agents B-Ds 29% VALIC FAs 33% Advisor Group AIG Direct Direct & Other Broker-dealers 3% AGLA Banks 13% Banks 5% A
Slide 21: AIG Life and Retirement – Variable Annuities
AIG Life and Retirement – Variable Annuities Changing competitive environment offers a unique opportunity. Variable Annuity “Non-Captive” Industry Sales(1) ($ millions) Six Months 2013 FY 2012 FY 2011 FY 2010 FY 2009 Rank Sales Share Rank Sales Share Rank Sales Share Rank Sales Share Rank Sales Shar
Slide 22: AIG Life and Retirement – Investment Composition & Ratings
AIG Life and Retirement – Investment Composition & Ratings (As of September 30, 2013) Total Cash & Invested Assets - $196.3 billion (1) Bond Portfolio - $156.6 billion(1) - by Agency Credit Rating 1) Includes intercompany invested assets that are eliminated in consolidation. 22
Slide 23: AIG Life and Retirement – Net Investment Spread Management
AIG Life and Retirement – Net Investment Spread Management Base Yields(1) Cost of Funds(2) Base Net Investment Spreads (1) 1) Includes the investment return on surplus other than alternative investment and yield enhancement activities. 2) Excludes the amortization of sales inducement assets. At Sept
Slide 24: Mortgage Guaranty (United Guaranty Corporation)
* * * * * * * * * * * Mortgage Guaranty (United Guaranty Corporation)
Slide 25: United Guaranty – Financial Highlights
United Guaranty – Financial Highlights Full Year Nine Months ($ in millions) 2010 2011 2012 2013 Net premiums written $756 $801 $858 $793 Net investment income 149 132 146 99 Pre-tax operating income (loss) (1) $353 $(97) $9 $157 Combined ratio 79.1 128.9 119.2 90.4 Cash & invested assets (2) $4,486
Slide 26: United Guaranty – A Market Leader
United Guaranty – A Market Leader Risk based pricing driving profitable new business. New Insurance Written Average ($ in billions) Vintage Year(1) FICO Score LTV Ratio 2010 760 90 2011 757 91 2012 758 91 Nine Months 754 92 2013 UGC’s risk-based pricing plan, Performance Premium, utilizes over a doz
Slide 27: United Guaranty – Shrinking Legacy In-Force
United Guaranty – Shrinking Legacy In-Force Primary Delinquency Rate Primary Risk-in-force (RIF) – $35.5 billion As of September 30, 2013 (by vintage year) 2004 & Prior 8% 2013 2005 24% 6% 2006 6% 2007 12% 2012 2008 23% 6% 2009 3% 2011 2010 9% 3% New business generated after 2008 represents 62% of p
Slide 28: United Guaranty – Financial Strength
United Guaranty – Financial Strength Capitalization and Risk Asset Composition At June 30, 2013 Default Post 2008 Risk-to- At Sept. 30, 2013 Rate (%) RIF (%) Capital(1) United Guaranty 6.4 62 18.6 Genworth 8.7 41 23.2 MGIC 11.5 39 20.0 Radian 7.8 57 19.8 Essent 0.1 100 18.0 UGC has the lowest defaul
Slide 29: Capital Strength
* * * * * * * * * * Capital Strength
Slide 30: Capital Position and Ratings
Capital Position and Ratings Capital Structure Credit Ratings(2) ($ in billions, except per share data) $124.1 S&P Moody’s Fitch AM Best $120.7 AIG – Senior A- Baa1 BBB NR Debt AIG PC(3) – A+ A1 A A FSR AIG L&R (3) – A+ A2 A+ A FSR Book Value Per Share $66.38 $67.10 Dec. 31, Sept. 30, Leverage Ratio
Slide 31: Financial Flexibility – A Source of Strength
Financial Flexibility – A Source of Strength AIG Parent Cash, Short-Term Investments & Insurance Company Distributions Unencumbered Securities ($ in millions) ($ in billions) AIG Parent cash, short-term investments and unencumbered fixed maturity securities of $12.7 billion includes $5.9 billion all
Slide 32: Other Sources of Value
* * * * * * * * * * Other Sources of Value
Slide 33: Direct Investment Book and Global Capital Markets
Direct Investment Book and Global Capital Markets Direct Investment Book (1) Global Capital Markets (1) ($ in billions) Assets $23.7 $8.0 Liabilities $20.8 $3.4 Net Asset Value $2.9 $4.6 Legacy Matched AIG Hedging & Legacy AIGFP Stable Value Go Forward Assets & Liabilities Market Derivatives (2) CDS
Slide 34: Direct Investment Book Long-Term Debt
Direct Investment Book Long-Term Debt ($ in billions) $25 90% 80% 80% $20 $18.7 $18.5 70% $1.2 $1.1 $16.3 60% $1.1 $14.5 55% $15 $5.8 $5.7 $0.8 $12.7 50% $5.1 $0.6 $4.5 40% $10 $3.5 $3.5 $8.3 $4.2 32% $3.5 $0.5 30% $3.5 $8.2 $8.2 23% $3.5 $3.9 $3.8 20% $5 $6.7 13% $0.3 $5.6 10% 0% $4.4 $3.5 $3.3 $0.
Slide 35: Deferred Tax Asset Overview
Deferred Tax Asset Overview AIG has substantial tax attribute carryforwards that are available under U.S. tax law to offset future U.S. federal income tax obligations. Amounts are presented on a U.S. GAAP basis. As of 12/31/11 As of 12/31/12 Gross Deferred Gross Deferred ($ in billions) Type Attribu
Slide 36: Appendix
* * * * * * * * * * Appendix
Slide 37: AIG Consolidated Financial Highlights
AIG Consolidated Financial Highlights Nine Months Inc. ($ in millions, except per share amounts) 2012 2013 (Dec.) Revenues $50,440 $48,029 (5%) Net income attributable to AIG 7,396 7,107 (4%) After-tax operating income attributable to AIG $6,345 $5,058 (20%) Diluted earnings per common share: Income
Slide 38: Non-GAAP Reconciliation – Pre-tax Operating Income
Non-GAAP Reconciliation – Pre-tax Operating Income 38
Slide 39: Non-GAAP Reconciliation – Full Year & Nine Months Pre-tax Operating Income
Non-GAAP Reconciliation – Full Year & Nine Months Pre-tax Operating Income AIG Property Casualty Full Year Nine Months ($ in millions) 2010 2011 2012 2013 Income from continuing operations, before tax $ (93) $ 1,820 $ 1,837 $ 3,801 Adjustments to arrive at pre-tax operating income: Net realized capi
Slide 40: Non-GAAP Reconciliation – After-tax operating income
Non-GAAP Reconciliation – After-tax operating income Nine Months ($ in millions) 2012 2013 Net income attributable to AIG $7,396 $7,107 Income from discontinued operations, net of income tax expense (280) (84) Net losses on sale of divested businesses 2 31 Uncertain tax positions and other tax adjus
Slide 41: Non-GAAP Reconciliation – BVPS ex. AOCI, Premiums & Deposits, Accident Year Combined Ratio
Non-GAAP Reconciliation – BVPS ex. AOCI, Premiums & Deposits, Accident Year Combined Ratio, As Adjusted Book Value Per Common Share - Ex. AOCI December 31, September 30, ($ in millions, except per share data) 2011 2012 2012 2013 Total AIG shareholders’ equity $ 101,538 $ 98,002 $ 101,666 $ 98,793 Le
Slide 42: AIG – Bring on tomorrow
AIG Bring on tomorrow
American International Group — Investor Presentation (November 2013) on 6ix